Celanese Corp - FORM 8-K - EX-99.2 - EX 99.2 - NON-GAAP MEASURES

Attached files

file	filename
EX-99.1 - EX 99.1 - EARNINGS RELEASE - Celanese Corp	q220148-kex991.htm
EX-99.4 - EX 99.4 - PREPARED REMARKS - Celanese Corp	q220148-kex994.htm
8-K - 8-K - Celanese Corp	q220148-kdoc.htm
EX-99.3 - EX 99.3 - SLIDES - Celanese Corp	q220148kex993.htm

Exhibit 99.2

Non-US GAAP Financial Measures and Supplemental Information

July 17, 2014

In this document, the terms "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.

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 as the Company believes them to be important supplemental measures for assessing our financial and operating results and as a means to evaluate 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), cash flow from operating activities, earnings per share or any other US GAAP financial measure. The 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 on the Investor Relations/Financial Information/Non-GAAP Financial Measures page of our website, www.celanese.com, in this document, in the presentation itself or on a Form 8-K in connection with the presentation, 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 supplemental financial disclosure should be considered within the context of our complete audited financial results for the given period, which are available on the Investor Relations/Financial Information/SEC Filings page of our website, www.celanese.com.

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, operating EBITDA, adjusted earnings per share, net debt, adjusted free cash flow and return on capital employed. 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); for adjusted earnings per share is earnings (loss) from continuing operations per common share-diluted; for net debt is total debt; and for adjusted free cash flow is cash flow from operations. We do not believe that there is a directly comparable financial measure calculated and presented in accordance with GAAP for return on capital employed.

Definitions

•

Adjusted EBIT is defined by the Company as net earnings (loss) less interest income plus loss (earnings) from discontinued operations, interest expense and taxes, and further adjusted for certain items and amounts attributable to noncontrolling interests ("NCI"). We believe that adjusted EBIT provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our core 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 may provide guidance on adjusted EBIT but are unable to reconcile forecasted adjusted EBIT to a US GAAP financial measure without unreasonable effort because a forecast of certain items is not practical. Adjusted EBIT by business segment may also be referred to by management as segment income.

•

Operating EBITDA is defined by the Company as net earnings (loss) less interest income plus loss (earnings) from discontinued operations, interest expense, taxes and depreciation and amortization, and further adjusted for certain items and amounts attributable to NCI. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization, and has the same uses and limitations as adjusted EBIT described above.

•

Adjusted earnings per share is defined by the Company as earnings (loss) from continuing operations, adjusted for income tax (provision) benefit, certain items, refinancing and related expenses and amounts attributable to NCI, divided by the number of basic common shares, convertible preferred 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 core operating results from period-to-period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. We may provide guidance on adjusted earnings per share but are unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure without unreasonable effort because a forecast of certain items is not practical.

Note: 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, where applicable, and specifically excludes changes in uncertain tax positions, discrete items and other material 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. We also reflect the impact of foreign tax credits when utilized for the adjusted earnings per share tax rate. We analyze this rate quarterly and adjust 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. It is not practical to reconcile our prospective adjusted tax rate to the actual GAAP tax rate in any given future period.

•

Adjusted free cash flow is defined by the Company as cash flow from operations less other productive asset purchases, operating cash flow from discontinued operations and certain cash flow adjustments, including amounts attributable to NCI and capital contributions from outside stockholders of the Company's consolidated ventures. We believe that adjusted free cash flow provides useful information to management, investors, analysts and other parties in evaluating the Company’s liquidity and credit quality assessment. Although we use adjusted free cash flow as a financial measure to assess the performance of our business, the use of adjusted free cash flow has important limitations, including that adjusted 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, adjusted for amounts attributable to NCI. 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 capital employed is defined by the Company as adjusted EBIT divided by the sum of property, plant and equipment, net and trade working capital (calculated as trade receivables, net plus inventories less trade payables – third party and affiliates), adjusted for outside stockholders' interest in property, plant and equipment, net related to the Company's consolidated ventures and trade working capital amounts attributable to NCI.

Supplemental Information

Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following:


•	For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside stockholders' interests are shown as noncontrolling interests. Beginning in 2014, this includes Fairway Methanol LLC for which the Company's ownership percentage is 50%.


•	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 and cost investments.

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.

Change in accounting policy regarding pension and other postretirement benefits

Effective January 1, 2013, we elected to change our policy to immediately recognize actuarial gains and losses and the change in fair value of plan assets for our defined benefit pension plans and other postretirement benefit plans. Financial information for prior periods has been retrospectively adjusted.

Table 1

Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited



	Q2 '14		Q1 '14		2013		Q4 '13		Q3 '13		Q2 '13		Q1 '13		2012		2011		2010		2009
	(In $ millions, except ratios)
Net earnings (loss)	258		195		1,101		654		172		133		142		372		427		312		403
Net (earnings) loss attributable to NCI	1		1		—		—		—		—		—		—		—		—		—
(Earnings) loss from discontinued operations	—		—		—		2		(1	)	—		(1	)	4		(1	)	49		(4	)
Interest income	(2	)	—		(1	)	—		—		(1	)	—		(2	)	(3	)	(7	)	(8	)
Interest expense	40		39		172		42		43		44		43		185		221		204		207
Interest expense attributable to NCI	—		—		—		—		—		—		—		—		—		—		—
Refinancing expense	—		—		1		—		1		—		—		3		3		16		—
Income tax provision (benefit)	94		78		508		299		57		75		77		(55	)	41		72		(294	)
Income tax (provision) benefit attributable to NCI	—		—		—		—		—		—		—		—		—		—		—
Certain items attributable to Celanese Corporation⁽¹⁾	(62	)	(11	)	(725	)	(753	)	7		13		8		455		405		197		221
Adjusted EBIT	329		302		1,056		244		279		264		269		962		1,093		843		525
Depreciation and amortization expense⁽²⁾	72		73		302		75		76		75		76		300		287		258		290
Depreciation and amortization expense attributable to NCI	—		—		—		—		—		—		—		—		—		—		—
Operating EBITDA	401		375		1,358		319		355		339		345		1,262		1,380		1,101		815

Operating EBITDA / Interest expense					7.9										6.8		6.2		5.4		3.9



	Q2 '14	Q1 '14	2013	Q4 '13	Q3 '13	Q2 '13	Q1 '13	2012	2011	2010	2009
	(In $ millions)
Advanced Engineered Materials	—	—	—	—	—	—	—	—	3	4	1
Consumer Specialties	—	—	—	—	—	—	—	6	8	5	—
Industrial Specialties	—	2	3	3	—	—	—	2	—	—	5
Acetyl Intermediates	—	—	—	—	—	—	—	—	—	20	12
Other Activities⁽³⁾	—	—	—	—	—	—	—	—	—	—	—
Accelerated depreciation and amortization expense	—	2	3	3	—	—	—	8	11	29	18
Depreciation and amortization expense⁽²⁾	72	73	302	75	76	75	76	300	287	258	290
Depreciation and amortization expense attributable to NCI	—	—	—	—	—	—	—	—	—	—	—
Total depreciation and amortization expense attributable to Celanese Corporation	72	75	305	78	76	75	76	308	298	287	308

______________________________


⁽¹⁾	See Certain items presentation (Table 8) for details.


⁽²⁾	Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Certain items above.


⁽³⁾	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).



Table 2 - Segment Data and Reconciliation of Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited



	Q2 '14				Q1 '14				2013				Q4 '13				Q3 '13				Q2 '13				Q1 '13				2012				2011				2010				2009
	(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation⁽¹⁾
Advanced Engineered Materials	56		14.4	%	57		15.3	%	904		66.9	%	781		240.3	%	48		13.9	%	39		11.1	%	36		10.9	%	95		7.5	%	79		6.1	%	182		16.4	%	36		4.5	%
Consumer Specialties	80		27.7	%	99		32.8	%	346		28.5	%	100		33.9	%	85		27.4	%	83		26.4	%	78		26.4	%	251		21.2	%	229		19.7	%	163		14.8	%	230		21.2	%
Industrial Specialties	24		7.2	%	20		6.4	%	64		5.5	%	7		2.6	%	24		8.0	%	18		6.1	%	15		5.2	%	86		7.3	%	102		8.3	%	89		8.6	%	89		9.1	%
Acetyl Intermediates⁽²⁾	143		15.9	%	98		11.7	%	153		4.7	%	(44	)	(5.3	)%	67		8.4	%	55		6.8	%	75		9.3	%	269		8.3	%	458		12.9	%	237		7.7	%	88		3.4	%
Other Activities⁽³⁾	(43	)			(30	)			41				100				(13	)			(26	)			(20	)			(526	)			(466	)			(273	)			(299	)
Total	260		14.7	%	244		14.3	%	1,508		23.2	%	944		58.4	%	211		12.9	%	169		10.2	%	184		11.5	%	175		2.7	%	402		5.9	%	398		6.7	%	144		2.8	%
Equity Earnings, Cost-Dividend Income, Other Income (Expense) Attributable to Celanese Corporation
Advanced Engineered Materials	45				33				149				33				31				45				40				190				163				143				76
Consumer Specialties	35				30				95				24				21				24				26				90				80				73				57
Industrial Specialties	—				—				—				—				—				—				—				—				2				—				—
Acetyl Intermediates⁽²⁾	15				1				5				(4	)			3				3				3				13				10				9				9
Other Activities⁽³⁾	36				5				24				—				6				10				8				39				31				23				18
Total	131				69				273				53				61				82				77				332				286				248				160
Certain Items Attributable to Celanese Corporation⁽⁴⁾
Advanced Engineered Materials	(7	)			(6	)			(752	)			(758	)			2				2				2				16				60				(38	)			—
Consumer Specialties	(8	)			(2	)			(5	)			(13	)			2				2				4				34				23				97				10
Industrial Specialties	(2	)			—				9				6				1				1				1				2				1				(19	)			(26	)
Acetyl Intermediates	(12	)			(3	)			143				132				2				8				1				5				(3	)			62				103
Other Activities⁽³⁾	(33	)			—				(120	)			(120	)			—				—				—				398				324				95				134
Total	(62	)			(11	)			(725	)			(753	)			7				13				8				455				405				197				221
Adjusted EBIT / Adjusted EBIT Margin⁽¹⁾
Advanced Engineered Materials	94		24.2	%	84		22.5	%	301		22.3	%	56		17.2	%	81		23.4	%	86		24.4	%	78		23.7	%	301		23.9	%	302		23.3	%	287		25.9	%	112		13.9	%
Consumer Specialties	107		37.0	%	127		42.1	%	436		35.9	%	111		37.6	%	108		34.8	%	109		34.7	%	108		36.6	%	375		31.6	%	332		28.6	%	333		30.3	%	297		27.4	%
Industrial Specialties	22		6.6	%	20		6.4	%	73		6.3	%	13		4.8	%	25		8.4	%	19		6.4	%	16		5.6	%	88		7.4	%	105		8.6	%	70		6.8	%	63		6.5	%
Acetyl Intermediates	146		16.2	%	96		11.4	%	301		9.3	%	84		10.1	%	72		9.1	%	66		8.2	%	79		9.8	%	287		8.9	%	465		13.1	%	308		10.0	%	200		7.7	%
Other Activities⁽³⁾	(40	)			(25	)			(55	)			(20	)			(7	)			(16	)			(12	)			(89	)			(111	)			(155	)			(147	)
Total	329		18.6	%	302		17.7	%	1,056		16.2	%	244		15.1	%	279		17.1	%	264		16.0	%	269		16.8	%	962		15.0	%	1,093		16.2	%	843		14.2	%	525		10.3	%
Depreciation and Amortization Expense Attributable to Celanese Corporation⁽⁵⁾
Advanced Engineered Materials	27				26				110				27				27				27				29				113				97				72				72
Consumer Specialties	10				11				41				11				10				10				10				39				36				37				50
Industrial Specialties	12				12				49				12				13				12				12				53				45				41				46
Acetyl Intermediates	19				21				86				21				22				22				21				80				96				97				111
Other Activities⁽³⁾	4				3				16				4				4				4				4				15				13				11				11
Total	72				73				302				75				76				75				76				300				287				258				290
Operating EBITDA
Advanced Engineered Materials	121		31.1	%	110		29.5	%	411		30.4	%	83		25.5	%	108		31.2	%	113		32.1	%	107		32.5	%	414		32.8	%	399		30.7	%	359		32.4	%	184		22.8	%
Consumer Specialties	117		40.5	%	138		45.7	%	477		39.3	%	122		41.4	%	118		38.1	%	119		37.9	%	118		40.0	%	414		34.9	%	368		31.7	%	370		33.7	%	347		32.0	%
Industrial Specialties	34		10.2	%	32		10.3	%	122		10.6	%	25		9.2	%	38		12.7	%	31		10.5	%	28		9.7	%	141		11.9	%	150		12.3	%	111		10.7	%	109		11.2	%
Acetyl Intermediates	165		18.3	%	117		13.9	%	387		11.9	%	105		12.7	%	94		11.8	%	88		10.9	%	100		12.4	%	367		11.4	%	561		15.8	%	405		13.1	%	311		11.9	%
Other Activities⁽³⁾	(36	)			(22	)			(39	)			(16	)			(3	)			(12	)			(8	)			(74	)			(98	)			(144	)			(136	)
Total	401		22.7	%	375		22.0	%	1,358		20.9	%	319		19.7	%	355		21.7	%	339		20.5	%	345		21.5	%	1,262		19.7	%	1,380		20.4	%	1,101		18.6	%	815		16.0	%

___________________________


⁽¹⁾	Defined as Operating profit (loss) attributable to Celanese Corporation and Adjusted EBIT, respectively, divided by Net sales attributable to Celanese Corporation.


⁽²⁾	Excludes amounts attributable to NCI as follows:



	Q2 '14		Q1 '14		2013	Q4 '13	Q3 '13	Q2 '13	Q1 '13	2012	2011	2010	2009
	(In $ millions)
Operating Profit (Loss)	(1	)	(1	)	—	—	—	—	—	—	—	—	—
Equity Earnings, Cost-Dividend Income, Other Income (Expense)	—		—		—	—	—	—	—	—	—	—	—


⁽³⁾	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).


⁽⁴⁾	See Certain items presentation (Table 8) for details.


⁽⁵⁾	Excludes accelerated depreciation and amortization expense included in Certain items above. See Table 1 for details.

Table 3

Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP Measure - Unaudited



	Q2 '14			Q1 '14			2013			Q4 '13			Q3 '13			Q2 '13			Q1 '13			2012			2011			2010			2009
			per share			per share			per share			per share			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	259		1.66	196		1.25	1,101		6.91	656		4.16	171		1.07	133		0.83	141		0.88	376		2.35	426		2.68	361		2.28	399		2.54
Income tax provision (benefit)	94			78			508			299			57			75			77			(55	)		41			72			(294	)
Income tax (provision) benefit attributable to NCI	—			—			—			—			—			—			—			—			—			—			—
Earnings (loss) from continuing operations before tax	353			274			1,609			955			228			208			218			321			467			433			105
Certain items attributable to Celanese Corporation⁽¹⁾	(62	)		(11	)		(725	)		(753	)		7			13			8			455			405			197			221
Refinancing and related expenses	—			—			1			—			1			—			—			8			3			16			—
Adjusted earnings (loss) from continuing operations before tax	291			263			885			202			236			221			226			784			875			646			326
Income tax (provision) benefit on adjusted earnings⁽²⁾	(61	)		(55	)		(168	)		(38	)		(45	)		(42	)		(43	)		(133	)		(158	)		(136	)		(78	)
Adjusted earnings (loss) from continuing operations⁽³⁾	230		1.47	208		1.33	717		4.50	164		1.04	191		1.20	179		1.12	183		1.14	651		4.07	717		4.51	510		3.22	248		1.58
	Diluted shares (in millions) ⁽⁴⁾
Weighted average shares outstanding	155.8			156.5			158.8			157.4			158.5			159.7			159.7			158.4			156.2			154.6			143.7
Dilutive stock options	0.2			0.2			0.2			0.2			0.2			0.2			0.2			0.8			1.9			1.8			1.1
Dilutive restricted stock units	0.1			0.1			0.3			0.1			0.4			0.2			0.3			0.6			0.8			0.4			0.2
Assumed conversion of preferred stock	—			—			—			—			—			—			—			—			—			1.6			12.1
Total diluted shares	156.1			156.8			159.3			157.7			159.1			160.1			160.2			159.8			158.9			158.4			157.1

______________________________


⁽¹⁾	See Certain items presentation (Table 8) for details.


⁽²⁾	Calculated using adjusted effective tax rates as follows:



	Q2 '14	Q1 '14	2013	Q4 '13	Q3 '13	Q2 '13	Q1 '13	2012	2011	2010	2009
	(In percentages)
Adjusted effective tax rate	21	21	19	19	19	19	19	17	18	21	24


⁽³⁾	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
Q4 '13 & 2013	7.9	%	8.0	%
2012	13.1	%	8.1	%
2011	7.6	%	8.1	%
2010	15.1	%	8.1	%
2009	17.9	%	7.9	%


⁽⁴⁾	Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.

Table 4

Net Sales by Segment - Unaudited



	Q2 '14		Q1 '14		2013		Q4 '13		Q3 '13		Q2 '13		Q1 '13		2012		2011		2010		2009
	(In $ millions)
Advanced Engineered Materials	389		373		1,352		325		346		352		329		1,261		1,298		1,109		808
Consumer Specialties	289		302		1,214		295		310		314		295		1,186		1,161		1,098		1,084
Industrial Specialties	333		312		1,155		273		299		295		288		1,184		1,223		1,036		974
Acetyl Intermediates	901		841		3,241		829		795		809		808		3,231		3,551		3,082		2,603
Other Activities⁽¹⁾	—		—		—		—		—		—		—		—		1		2		2
Intersegment elimination⁽²⁾	(143	)	(123	)	(452	)	(106	)	(114	)	(117	)	(115	)	(444	)	(471	)	(409	)	(389	)
Net sales	1,769		1,705		6,510		1,616		1,636		1,653		1,605		6,418		6,763		5,918		5,082
Acetyl Intermediates Net sales attributable to NCI	—		—		—		—		—		—		—		—		—		—		—
Net sales attributable to Celanese Corporation	1,769		1,705		6,510		1,616		1,636		1,653		1,605		6,418		6,763		5,918		5,082

___________________________


⁽¹⁾	Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).


⁽²⁾	Includes intersegment sales as follows:



	Q2 '14		Q1 '14		2013		Q4 '13		Q3 '13		Q2 '13		Q1 '13		2012		2011		2010		2009
	(In $ millions)
Consumer Specialties	—		—		(4	)	—		—		(1	)	(3	)	(4	)	(3	)	(9	)	(6	)
Acetyl Intermediates	(143	)	(123	)	(448	)	(106	)	(114	)	(116	)	(112	)	(440	)	(468	)	(400	)	(383	)
Intersegment elimination	(143	)	(123	)	(452	)	(106	)	(114	)	(117	)	(115	)	(444	)	(471	)	(409	)	(389	)

Table 4a

Factors Affecting Segment Net Sales Sequentially - Unaudited

Three Months Ended June 30, 2014 Compared to Three Months Ended March 31, 2014



	Volume		Price		Currency	Other		Total
	(In percentages)
Advanced Engineered Materials	4		—		—	—		4
Consumer Specialties	(3	)	(1	)	—	—		(4	)
Industrial Specialties	2		4		—	—		6
Acetyl Intermediates	1		6		—	—		7
Total Company	1		4		—	(1	)	4

Three Months Ended March 31, 2014 Compared to Three Months Ended December 31, 2013



	Volume		Price	Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	12		3	—	—	15
Consumer Specialties	—		2	—	—	2
Industrial Specialties	13		1	—	—	14
Acetyl Intermediates	(3	)	5	—	—	2
Total Company	3		3	—	—	6

Three Months Ended December 31, 2013 Compared to Three Months Ended September 30, 2013



	Volume		Price		Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	(4	)	(3	)	1	—	(6	)
Consumer Specialties	(5	)	—		—	—	(5	)
Industrial Specialties	(10	)	—		1	—	(9	)
Acetyl Intermediates	2		1		1	—	4
Total Company	(3	)	—		1	—	(2	)

Three Months Ended September 30, 2013 Compared to Three Months Ended June 30, 2013



	Volume		Price		Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	(2	)	—		—	—	(2	)
Consumer Specialties	(1	)	—		—	—	(1	)
Industrial Specialties	3		(3	)	1	—	1
Acetyl Intermediates	(1	)	(1	)	—	—	(2	)
Total Company	—		(1	)	—	—	(1	)

Table 4b

Factors Affecting Segment Net Sales Year Over Year - Unaudited

Three Months Ended June 30, 2014 Compared to Three Months Ended June 30, 2013



	Volume		Price		Currency	Other		Total
	(In percentages)
Advanced Engineered Materials	10		(1	)	2	—		11
Consumer Specialties	(9	)	1		—	—		(8	)
Industrial Specialties	8		3		2	—		13
Acetyl Intermediates	(2	)	12		1	—		11
Total Company	1		6		2	(2	)	7

Three Months Ended March 31, 2014 Compared to Three Months Ended March 31, 2013



	Volume		Price		Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	14		(2	)	1	—	13
Consumer Specialties	(1	)	3		—	—	2
Industrial Specialties	6		—		2	—	8
Acetyl Intermediates	(3	)	5		2	—	4
Total Company	3		2		1	—	6

Three Months Ended December 31, 2013 Compared to Three Months Ended December 31, 2012



	Volume		Price		Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	9		(2	)	2	—	9
Consumer Specialties	(1	)	6		—	—	5
Industrial Specialties	8		(2	)	3	—	9
Acetyl Intermediates	6		(1	)	2	—	7
Total Company	6		—		2	—	8

Three Months Ended September 30, 2013 Compared to Three Months Ended September 30, 2012



	Volume		Price		Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	6		(1	)	2	—	7
Consumer Specialties	(7	)	6		—	—	(1	)
Industrial Specialties	1		(3	)	3	—	1
Acetyl Intermediates	(1	)	—		2	—	1
Total Company	—		—		2	—	2

Table 4a

Factors Affecting Segment Net Sales Sequentially - Unaudited (continued)

Three Months Ended June 30, 2013 Compared to Three Months Ended March 31, 2013



	Volume	Price		Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	8	(1	)	—	—	7
Consumer Specialties	6	1		—	—	7
Industrial Specialties	2	1		—	—	3
Acetyl Intermediates	—	—		—	—	—
Total Company	3	—		—	—	3

Three Months Ended March 31, 2013 Compared to Three Months Ended December 31, 2012



	Volume	Price		Currency	Other		Total
	(In percentages)
Advanced Engineered Materials	6	3		1	—		10
Consumer Specialties	—	5		—	—		5
Industrial Specialties	14	—		1	—		15
Acetyl Intermediates	5	(1	)	1	—		5
Total Company	6	1		1	(1	)	7

Table 4b

Factors Affecting Segment Net Sales Year Over Year - Unaudited (continued)

Three Months Ended June 30, 2013 Compared to Three Months Ended June 30, 2012



	Volume		Price		Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	7		1		1	—	9
Consumer Specialties	(10	)	6		—	—	(4	)
Industrial Specialties	(7	)	(4	)	1	—	(10	)
Acetyl Intermediates	2		(4	)	1	—	(1	)
Total Company	(1	)	(1	)	1	—	(1	)

Three Months Ended March 31, 2013 Compared to Three Months Ended March 31, 2012



	Volume		Price		Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	—		4		—	—	4
Consumer Specialties	5		7		—	—	12
Industrial Specialties	(3	)	(4	)	—	—	(7	)
Acetyl Intermediates	(4	)	(1	)	—	—	(5	)
Total Company	(2	)	—		—	—	(2	)

Table 4c

Factors Affecting Segment Net Sales Year Over Year - Unaudited

Year Ended December 31, 2013 Compared to Year Ended December 31, 2012



	Volume		Price		Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	5		1		1	—	7
Consumer Specialties	(4	)	6		—	—	2
Industrial Specialties	(1	)	(3	)	2	—	(2	)
Acetyl Intermediates	1		(2	)	1	—	—
Total Company	—		—		1	—	1

Year Ended December 31, 2012 Compared to Year Ended December 31, 2011



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	(2	)	2		(3	)	—	(3	)
Consumer Specialties	(4	)	6		—		—	2
Industrial Specialties	3		(3	)	(3	)	—	(3	)
Acetyl Intermediates	—		(7	)	(2	)	—	(9	)
Total Company	—		(3	)	(2	)	—	(5	)

Year Ended December 31, 2011 Compared to Year Ended December 31, 2010



	Volume		Price	Currency	Other		Total
	(In percentages)
Advanced Engineered Materials	2		8	3	4	⁽¹⁾	17
Consumer Specialties	1		5	—	—		6
Industrial Specialties	2		13	3	—		18
Acetyl Intermediates	(4	)	16	3	—		15
Total Company	(1	)	13	3	—		15

____________________


⁽¹⁾	Includes the effects of the two product lines acquired in May 2010 from DuPont Performance Polymers

Year Ended December 31, 2010 Compared to Year Ended December 31, 2009



	Volume	Price	Currency		Other			Total
	(In percentages)
Advanced Engineered Materials	35	1	(3	)	4		⁽¹⁾	37
Consumer Specialties	2	—	(1	)	—			1
Industrial Specialties	11	6	(3	)	(8	)	⁽²⁾	6
Acetyl Intermediates	10	10	(2	)	—			18
Total Company	13	7	(2	)	(2	)	⁽³⁾	16

____________________


⁽¹⁾	2010 includes the effects of the FACT GmbH (Future Advanced Composites Technology) and DuPont acquisitions.


⁽²⁾	2010 does not include the effects of the PVOH business, which was sold on July 1, 2009.


⁽³⁾	Includes the effects of the captive insurance companies and the impact of fluctuations in intersegment eliminations.

Table 5

Adjusted Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited



	Q2 '14		Q1 '14		2013		Q4 '13		Q3 '13		Q2 '13		Q1 '13		2012		2011		2010
	(In $ millions, except percentages)
Net cash provided by (used in) operating activities	253		164		762		154		232		229		147		722		638		452
Net cash (provided by) used in operating activities attributable to NCI	—		13		—		—		—		—		—		—		—		—
Adjustments to operating cash for discontinued operations	—		—		4		(1	)	—		6		(1	)	(2	)	9		58
Net cash provided by (used in) operating activities from continuing operations attributable to Celanese Corporation	253		177		766		153		232		235		146		720		647		510
Capital expenditures on property, plant and equipment	(125	)	(148	)	(370	)	(111	)	(110	)	(75	)	(74	)	(361	)	(349	)	(201	)
Capital contributions from Mitsui & Co., Ltd. to Fairway Methanol LLC	39		109		—		—		—		—		—		—		—		—
Cash flow adjustments⁽¹⁾	(6	)	(3	)	(24	)	(5	)	(5	)	(6	)	(8	)	(20	)	28		(15	)
Adjusted free cash flow	161		135		372		37		117		154		64		339		326		294

Net sales attributable to Celanese Corporation	1,769		1,705		6,510		1,616		1,636		1,653		1,605		6,418		6,763		5,918

Adjusted free cash flow as % of Net sales	9.1	%	7.9	%	5.7	%	2.3	%	7.2	%	9.3	%	4.0	%	5.3	%	4.8	%	5.0	%

______________________________


⁽¹⁾	Primarily associated with purchases of other productive assets that are classified as 'investing activities' for GAAP purposes. Amounts for 2010-2012 also include Kelsterbach plant relocation related cash expenses.

Table 6

Cash Dividends Received - Unaudited



	Q2 '14	Q1 '14	2013	Q4 '13	Q3 '13	Q2 '13	Q1 '13	2012	2011	2010	2009
	(In $ millions)
Dividends from equity method investments	48	65	141	38	11	45	47	262	205	138	78
Dividends from cost method investments	29	29	93	24	22	23	24	85	80	73	57
Total	77	94	234	62	33	68	71	347	285	211	135

Table 7

Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited



	Q2 '14		Q1 '14		2013	Q4 '13	Q3 '13	Q2 '13	Q1 '13	2012	2011	2010	2009
	(In $ millions, except ratios)
Short-term borrowings and current installments of long-term debt - third party and affiliates	158		157		177	177	224	224	112	168	144	228	242
Long-term debt	2,880		2,881		2,887	2,887	2,870	2,860	2,959	2,930	2,873	2,990	3,259
Total debt	3,038		3,038		3,064	3,064	3,094	3,084	3,071	3,098	3,017	3,218	3,501
Total debt attributable to NCI	—		—		—	—	—	—	—	—	—	—	—
Cash and cash equivalents	1,064		998		984	984	1,100	1,107	978	959	682	740	1,254
Cash and cash equivalents attributable to NCI	(22	)	(17	)	—	—	—	—	—	—	—	—	—
Net debt	1,996		2,057		2,080	2,080	1,994	1,977	2,093	2,139	2,335	2,478	2,247

Operating EBITDA					1,358					1,262	1,380	1,101	815

Net debt / Operating EBITDA					1.5					1.7	1.7	2.3	2.8

Table 8

Certain Items - Unaudited

The following Certain items are included in Net earnings (loss) and are adjustments to non-GAAP measures:



	Q2 '14		Q1 '14		2013		Q4 '13		Q3 '13	Q2 '13	Q1 '13	2012		2011		2010		2009		Income Statement Classification
	(In $ millions)
Employee termination benefits	1		2		23		20		—	1	2	6		22		32		105		Other charges (gains), net
Plant/office closures	2		3		43		40		1	1	1	21		18		21		42		Other charges (gains), net / Cost of sales / SG&A
Business optimization	—		—		—		—		—	—	—	9		8		16		7		Cost of sales / SG&A
Asset impairments	—		—		83		81		2	—	—	8		1		74		14		Other charges (gains), net / Other income (expense), net
(Gain) loss on disposition of business and assets, net	3		—		2		1		1	—	—	1		(1	)	(10	)	(34	)	(Gain) loss on disposition, net
Commercial disputes	—		—		12		7		—	5	—	(2	)	(7	)	9		—		Other charges (gains), net / Cost of sales / SG&A
Kelsterbach plant relocation	(1	)	—		(727	)	(733	)	2	2	2	21		55		13		16		Other charges (gains), net / Cost of sales / (Gain) loss on disposition
InfraServ Hoechst restructuring	(48	)	—		8		8		—	—	—	(22	)	—		—		—		Equity in net (earnings) loss of affiliates
Plumbing actions	—		—		—		—		—	—	—	(5	)	(6	)	(59	)	(10	)	Other charges (gains), net
Insurance recoveries	—		—		—		—		—	—	—	—		—		(18	)	(6	)	Other charges (gains), net
Write-off of other productive assets	5		—		—		—		—	—	—	—		(1	)	18		—		Cost of sales
Acetate production interruption costs	—		—		—		—		—	—	—	10		—		—		—		Cost of sales
(Gain) loss on pension plan and medical plan changes	(21	)	(16	)	(71	)	(71	)	—	—	—	—		—		—		—		Cost of sales / SG&A / R&D
Actuarial (gain) loss on pension and postretirement plans	—		—		(106	)	(106	)	—	—	—	389		306		84		104		Cost of sales / SG&A / R&D
Other	(3	)	—		8		—		1	4	3	19		10		17		(17	)	Various
Total	(62	)	(11	)	(725	)	(753	)	7	13	8	455		405		197		221
Certain items attributable to NCI	—		—		—		—		—	—	—	—		—		—		—
Certain items attributable to Celanese Corporation	(62	)	(11	)	(725	)	(753	)	7	13	8	455		405		197		221

Table 9

Return on Capital Employed - Presentation of a Non-GAAP Measure - Unaudited



	2013				2012				2011				2010				2009
	(In $ millions, except percentages)
Adjusted EBIT⁽¹⁾			1,056				962				1,093				843				525

Property, plant and equipment, net			3,425				3,350				3,269				3,017				2,797
Property, plant and equipment, net related to Fairway Methanol LLC⁽²⁾			(53	)			(6	)			—				—				—
Trade receivables, net	867				827				871				827				721
Inventories	804				711				712				610				522
Trade payables - third party and affiliates	(799	)			(649	)			(673	)			(673	)			(649	)
Trade working capital			872				889				910				764				594
Trade working capital attributable to NCI			—				—				—				—				—
Capital employed			4,244				4,233				4,179				3,781				3,391

Return on capital employed			24.9	%			22.7	%			26.2	%			22.3	%			15.5	%

______________________________


⁽¹⁾	See consolidated Adjusted EBIT reconciliation (Table 1) for details.


⁽²⁾	Represents 50% of property, plant and equipment, net related to the methanol unit being constructed in Clear Lake, Texas.

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