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

Attached files

file	filename
8-K - 8-K - Celanese Corp	q420158-kdoc.htm
EX-99.4 - EXHIBIT 99.4 - PREPARED REMARKS - Celanese Corp	q420158-kex9942015.htm
EX-99.3 - EXHIBIT 99.3 - SLIDES - Celanese Corp	q420158kex9932015.htm
EX-99.1 - EXHIBIT 99.1 - EARNINGS RELEASE - Celanese Corp	q420158-kex9912015.htm

Exhibit 99.2

Non-US GAAP Financial Measures and Supplemental Information

January 21, 2016

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 business segments in two subtotals, reflecting our two cores, the Acetyl Chain and Materials Solutions, based on similarities among customers, business models and technical processes. The Acetyl Chain includes the Company's Acetyl Intermediates segment and the Industrial Specialties segment. Materials Solutions includes the Company's Advanced Engineered Materials segment and the Consumer Specialties segment. For comparative purposes, the historical financial information included herein has been presented to reflect the Acetyl Chain and Materials Solutions subtotals. There has been no change to the composition of the Company's business segments.

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 and unaudited 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, operating profit (loss) attributable to Celanese Corporation, adjusted earnings per share, net debt, free cash flow and return on invested capital. 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 operating profit (loss) attributable to Celanese Corporation is operating profit (loss); for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; for net debt is total debt; and for 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 invested capital.

Definitions

•

Adjusted EBIT 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, refinancing expense and taxes, and further adjusted for certain items attributable to Celanese Corporation. 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 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. Adjusted EBIT by core may also be referred to by management as core income. 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 defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, refinancing expense, taxes and depreciation and amortization, and further adjusted for certain items attributable to Celanese Corporation. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization, and has the same uses and limitations as adjusted EBIT described above. 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 adjusted EBIT described above.


•	Operating profit (loss) attributable to Celanese Corporation is defined by the Company as operating profit (loss), less earnings (loss) attributable to noncontrolling interests ("NCI"). Operating margin attributable to Celanese Corporation is defined by the Company as operating profit (loss) attributable to Celanese Corporation divided by net sales.

•

Adjusted earnings per share is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, certain items, 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 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. 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 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.

•

Free cash flow is defined by the Company as cash flow from operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from Mitsui & Co., Ltd. to Fairway Methanol LLC. 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. Although we use free cash flow as a financial measure to assess the performance of 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 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.

Supplemental Information

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


•	Operating margin, adjusted EBIT margin and operating EBITDA margin for Materials Solutions, the Acetyl Chain and each of our business segments.


•	Net sales for Materials Solutions, the Acetyl Chain and each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for Materials Solutions, the Acetyl Chain and each of our business segments.


•	Cash dividends received from our equity and cost 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 Methanol LLC for which the Company's ownership percentage is 50%. Amounts referred to as "attributable to Celanese Corporation" are net of any applicable NCI.

Recent Developments

•

During the third quarter of 2015, we revised our non-GAAP financial information to simplify its presentation by reducing certain immaterial items that had previously been excluded from the calculation of adjusted EBIT, free cash flow and net debt, as well as revising the calculation of return on invested capital. We believe the changes in methodology of our non-GAAP financial information will provide more meaningful insight into the performance of the Company's primary operations and enhance investors' ability to compare the Company's performance to its peers. The adoption of the changes in methodology has been applied retrospectively to prior periods to facilitate comparability across periods.

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.

Table 1

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



	2015		Q4 '15		Q3 '15	Q2 '15		Q1 '15	2014		Q4 '14		Q3 '14		Q2 '14		Q1 '14
	(In $ millions, except ratios)
Net earnings (loss) attributable to Celanese Corporation	304		(298	)	161	205		236	624		(84	)	253		259		196
(Earnings) loss from discontinued operations	2		—		—	2		—	7		2		5		—		—
Interest income	(1	)	—		—	(1	)	—	(1	)	4		(3	)	(2	)	—
Interest expense	119		33		29	30		27	147		27		41		40		39
Refinancing expense	—		—		—	—		—	29		25		4		—		—
Income tax provision (benefit)	201		31		74	24		72	314		52		90		94		78
Certain items attributable to Celanese Corporation⁽¹⁾	611		490		41	65		15	148		256		(35	)	(62	)	(11	)
Adjusted EBIT	1,236		256		305	325		350	1,268		282		355		329		302
Depreciation and amortization expense⁽²⁾	279		76		70	66		67	290		72		73		72		73
Operating EBITDA	1,515		332		375	391		417	1,558		354		428		401		375

Operating EBITDA / Interest expense	12.7								10.6



	2015	Q4 '15	Q3 '15	Q2 '15	Q1 '15	2014	Q4 '14	Q3 '14	Q2 '14	Q1 '14
	(In $ millions)
Advanced Engineered Materials	—	—	—	—	—	—	—	—	—	—
Consumer Specialties	10	10	—	—	—	—	—	—	—	—
Industrial Specialties	28	18	10	—	—	2	—	—	—	2
Acetyl Intermediates	40	1	—	39	—	—	—	—	—	—
Other Activities⁽³⁾	—	—	—	—	—	—	—	—	—	—
Accelerated depreciation and amortization expense	78	29	10	39	—	2	—	—	—	2
Depreciation and amortization expense⁽²⁾	279	76	70	66	67	290	72	73	72	73
Total depreciation and amortization expense attributable to Celanese	357	105	80	105	67	292	72	73	72	75

______________________________


⁽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



	2015					Q4 '15				Q3 '15				Q2 '15				Q1 '15				2014				Q4 '14				Q3 '14				Q2 '14				Q1 '14
	(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation
Advanced Engineered Materials	235			17.7	%	51		16.4	%	58		17.8	%	67		19.4	%	59		17.2	%	221		15.1	%	57		17.2	%	51		13.9	%	56		14.4	%	57		15.3	%
Consumer Specialties	262			27.0	%	46		18.7	%	77		31.2	%	77		30.9	%	62		27.3	%	388		33.4	%	104		37.4	%	105		36.1	%	80		27.7	%	99		32.8	%
Total Materials Solutions	497			21.7	%	97		17.4	%	135		23.6	%	144		24.2	%	121		21.2	%	609		23.3	%	161		26.4	%	156		23.7	%	136		20.1	%	156		23.1	%
Industrial Specialties	72			6.7	%	(4	)	(1.7	)%	19		6.9	%	28		9.8	%	29		10.3	%	76		6.2	%	16		6.0	%	16		5.1	%	24		7.2	%	20		6.4	%
Acetyl Intermediates⁽¹⁾	16			0.6	%	(239	)	(37.1	)%	64		9.4	%	58		8.2	%	133		18.7	%	562		16.1	%	146		17.9	%	175		18.7	%	143		15.9	%	98		11.7	%
Total Acetyl Chain	88			2.5	%	(243	)	(29.9	)%	83		9.5	%	86		9.4	%	162		17.8	%	638		14.8	%	162		16.5	%	191		16.7	%	167		14.9	%	118		11.1	%
Other Activities⁽²⁾	(240	)				(156	)			(22	)			(38	)			(24	)			(485	)			(376	)			(36	)			(43	)			(30	)
Total	345			6.1	%	(302	)	(22.6	)%	196		13.9	%	192		13.0	%	259		17.9	%	762		11.2	%	(53	)	(3.4	)%	311		17.6	%	260		14.7	%	244		14.3	%
Equity Earnings, Cost-Dividend Income, Other Income (Expense) Attributable to Celanese Corporation
Advanced Engineered Materials	151		⁽⁴⁾			33				44				31				43				161				40				43				45				33
Consumer Specialties	108					27				26				27				28				124				30				29				35				30
Total Materials Solutions	259					60				70				58				71				285				70				72				80				63
Industrial Specialties	—					—				—				—				—				—				—				—				—				—
Acetyl Intermediates	7					3				2				1				1				21				3				2				15				1
Total Acetyl Chain	7					3				2				1				1				21				3				2				15				1
Other Activities⁽²⁾	14					5				(4	)			9				4				52				6				5				36				5
Total	280					68				68				68				76				358				79				79				131				69
Certain Items Attributable to Celanese Corporation⁽³⁾
Advanced Engineered Materials	11					1				4				4				2				(53	)			(33	)			(7	)			(7	)			(6	)
Consumer Specialties	41					36				2				1				2				(52	)			(24	)			(18	)			(8	)			(2	)
Total Materials Solutions	52					37				6				5				4				(105	)			(57	)			(25	)			(15	)			(8	)
Industrial Specialties	38					26				9				2				1				(12	)			(9	)			(1	)			(2	)			—
Acetyl Intermediates	365					296				18				48				3				(36	)			(12	)			(9	)			(12	)			(3	)
Total Acetyl Chain	403					322				27				50				4				(48	)			(21	)			(10	)			(14	)			(3	)
Other Activities⁽²⁾	156					131				8				10				7				301				334				—				(33	)			—
Total	611					490				41				65				15				148				256				(35	)			(62	)			(11	)
Adjusted EBIT / Adjusted EBIT Margin
Advanced Engineered Materials	397			29.9	%	85		27.3	%	106		32.5	%	102		29.5	%	104		30.3	%	329		22.5	%	64		19.3	%	87		23.8	%	94		24.2	%	84		22.5	%
Consumer Specialties	411			42.4	%	109		44.3	%	105		42.5	%	105		42.2	%	92		40.5	%	460		39.7	%	110		39.6	%	116		39.9	%	107		37.0	%	127		42.1	%
Total Materials Solutions	808			35.2	%	194		34.8	%	211		36.8	%	207		34.8	%	196		34.4	%	789		30.1	%	174		28.6	%	203		30.9	%	201		29.6	%	211		31.3	%
Industrial Specialties	110			10.2	%	22		9.2	%	28		10.2	%	30		10.5	%	30		10.6	%	64		5.2	%	7		2.6	%	15		4.8	%	22		6.6	%	20		6.4	%
Acetyl Intermediates	388			14.1	%	60		9.3	%	84		12.4	%	107		15.1	%	137		19.2	%	547		15.7	%	137		16.8	%	168		17.9	%	146		16.2	%	96		11.4	%
Total Acetyl Chain	498			14.2	%	82		10.1	%	112		12.8	%	137		15.0	%	167		18.4	%	611		14.2	%	144		14.7	%	183		16.0	%	168		15.0	%	116		10.9	%
Other Activities⁽²⁾	(70	)				(20	)			(18	)			(19	)			(13	)			(132	)			(36	)			(31	)			(40	)			(25	)
Total	1,236			21.8	%	256		19.2	%	305		21.6	%	325		22.0	%	350		24.1	%	1,268		18.6	%	282		18.1	%	355		20.1	%	329		18.6	%	302		17.7	%

___________________________


⁽¹⁾	Excludes amounts attributable to NCI as follows:



	2015		Q4 '15		Q3 '15		Q2 '15		Q1 '15		2014		Q4 '14		Q3 '14		Q2 '14		Q1 '14
	(In $ millions)
Operating Profit (Loss)	(19	)	(3	)	(10	)	(4	)	(2	)	(4	)	(1	)	(1	)	(1	)	(1	)


⁽²⁾	Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).


⁽³⁾	See Certain items presentation (Table 8) for details.


⁽⁴⁾	Includes $150 million of Equity in net earnings (loss) of affiliates and $1 million of Other income.



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



	2015				Q4 '15				Q3 '15				Q2 '15				Q1 '15				2014				Q4 '14				Q3 '14				Q2 '14				Q1 '14
	(In $ millions, except percentages)
Depreciation and Amortization Expense Attributable to Celanese Corporation⁽¹⁾
Advanced Engineered Materials	99				24				26				24				25				106				26				27				27				26
Consumer Specialties	50				12				15				12				11				43				11				11				10				11
Total Materials Solutions	149				36				41				36				36				149				37				38				37				37
Industrial Specialties	36				7				10				9				10				48				12				12				12				12
Acetyl Intermediates	83				29				17				18				19				81				20				21				19				21
Total Acetyl Chain	119				36				27				27				29				129				32				33				31				33
Other Activities⁽²⁾	11				4				2				3				2				12				3				2				4				3
Total	279				76				70				66				67				290				72				73				72				73
Operating EBITDA / Operating EBITDA Margin
Advanced Engineered Materials	496		37.4	%	109		35.0	%	132		40.5	%	126		36.4	%	129		37.6	%	435		29.8	%	90		27.2	%	114		31.1	%	121		31.1	%	110		29.5	%
Consumer Specialties	461		47.6	%	121		49.2	%	120		48.6	%	117		47.0	%	103		45.4	%	503		43.4	%	121		43.5	%	127		43.6	%	117		40.5	%	138		45.7	%
Total Materials Solutions	957		41.7	%	230		41.3	%	252		44.0	%	243		40.8	%	232		40.7	%	938		35.8	%	211		34.6	%	241		36.7	%	238		35.1	%	248		36.7	%
Industrial Specialties	146		13.5	%	29		12.1	%	38		13.9	%	39		13.6	%	40		14.2	%	112		9.2	%	19		7.2	%	27		8.6	%	34		10.2	%	32		10.3	%
Acetyl Intermediates	471		17.2	%	89		13.8	%	101		14.9	%	125		17.7	%	156		21.9	%	628		18.0	%	157		19.3	%	189		20.2	%	165		18.3	%	117		13.9	%
Total Acetyl Chain	617		17.6	%	118		14.5	%	139		15.9	%	164		18.0	%	196		21.6	%	740		17.2	%	176		17.9	%	216		18.9	%	199		17.8	%	149		14.0	%
Other Activities⁽²⁾	(59	)			(16	)			(16	)			(16	)			(11	)			(120	)			(33	)			(29	)			(36	)			(22	)
Total	1,515		26.7	%	332		24.9	%	375		26.5	%	391		26.5	%	417		28.8	%	1,558		22.9	%	354		22.7	%	428		24.2	%	401		22.7	%	375		22.0	%

___________________________


⁽¹⁾	Excludes accelerated depreciation and amortization expense 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).

Table 3

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



	2015			Q4 '15				Q3 '15			Q2 '15			Q1 '15			2014			Q4 '14				Q3 '14			Q2 '14			Q1 '14
			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	306		2.01	(298	)	(2.03	)	161		1.07	207		1.34	236		1.53	631		4.04	(82	)	(0.54	)	258		1.66	259		1.66	196		1.25
Income tax provision (benefit)	201			31				74			24			72			314			52				90			94			78
Earnings (loss) from continuing operations before tax	507			(267	)			235			231			308			945			(30	)			348			353			274
Certain items attributable to Celanese Corporation⁽¹⁾	611			490				41			65			15			148			256				(35	)		(62	)		(11	)
Refinancing and related expenses	—			—				—			—			—			29			25				4			—			—
Adjusted earnings (loss) from continuing operations before tax	1,118			223				276			296			323			1,122			251				317			291			263
Income tax (provision) benefit on adjusted earnings⁽²⁾	(201	)		(40	)			(50	)		(53	)		(58	)		(236	)		(53	)			(67	)		(61	)		(55	)
Adjusted earnings (loss) from continuing operations⁽³⁾	917		6.02	183		1.25		226		1.50	243		1.58	265		1.72	886		5.67	198		1.28		250		1.61	230		1.47	208		1.33
	Diluted shares (in millions)⁽⁴⁾
Weighted average shares outstanding	150.8			146.9				149.8			153.5			153.2			155.0			153.4				154.5			155.8			156.5
Incremental shares attributable to equity awards	1.5			—				1.2			0.5			0.7			1.2			1.0				0.7			0.3			0.3
Total diluted shares	152.3			146.9				151.0			154.0			153.9			156.2			154.4				155.2			156.1			156.8

______________________________


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


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



	2015	Q4 '15	Q3 '15	Q2 '15	Q1 '15	2014	Q4 '14	Q3 '14	Q2 '14	Q1 '14
	(In percentages)
Adjusted effective tax rate	18	18	18	18	18	21	21	21	21	21


⁽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 '15 & 2015	(2.5	)%	7.8	%
2014	12.7	%	8.2	%


⁽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



	2015		Q4 '15		Q3 '15		Q2 '15		Q1 '15		2014		Q4 '14		Q3 '14		Q2 '14		Q1 '14
	(In $ millions)
Advanced Engineered Materials	1,326		311		326		346		343		1,459		331		366		389		373
Consumer Specialties	969		246		247		249		227		1,160		278		291		289		302
Total Materials Solutions	2,295		557		573		595		570		2,619		609		657		678		675
Industrial Specialties	1,082		239		274		287		282		1,224		265		314		333		312
Acetyl Intermediates	2,744		644		680		707		713		3,493		814		937		901		841
Eliminations⁽¹⁾	(323	)	(71	)	(82	)	(83	)	(87	)	(411	)	(97	)	(109	)	(113	)	(92	)
Total Acetyl Chain	3,503		812		872		911		908		4,306		982		1,142		1,121		1,061
Other Activities⁽²⁾	—		—		—		—		—		—		—		—		—		—
Intersegment eliminations⁽¹⁾	(124	)	(35	)	(32	)	(29	)	(28	)	(123	)	(32	)	(30	)	(30	)	(31	)
Net sales	5,674		1,334		1,413		1,477		1,450		6,802		1,559		1,769		1,769		1,705

___________________________


⁽¹⁾	Includes intersegment sales as follows:



	2015		Q4 '15		Q3 '15		Q2 '15		Q1 '15		2014		Q4 '14		Q3 '14		Q2 '14		Q1 '14
	(In $ millions)
Consumer Specialties	—		—		—		—		—		(2	)	—		(2	)	—		—
Acetyl Intermediates	(447	)	(106	)	(114	)	(112	)	(115	)	(532	)	(129	)	(137	)	(143	)	(123	)
Intersegment eliminations	(447	)	(106	)	(114	)	(112	)	(115	)	(534	)	(129	)	(139	)	(143	)	(123	)


⁽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).

Table 4a

Factors Affecting Segment Net Sales Sequentially - Unaudited

Three Months Ended December 31, 2015 Compared to Three Months Ended September 30, 2015



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	(3	)	—		(1	)	—	(4	)
Consumer Specialties	(1	)	1		—		—	—
Total Materials Solutions	(3	)	—		—		—	(3	)

Industrial Specialties	(7	)	(5	)	(1	)	—	(13	)
Acetyl Intermediates	1		(7	)	(1	)	2	(5	)
Total Acetyl Chain	(2	)	(7	)	(1	)	3	(7	)

Total Company	(1	)	(4	)	(1	)	—	(6	)

Three Months Ended September 30, 2015 Compared to Three Months Ended June 30, 2015



	Volume		Price		Currency	Other	Total
	(In percentages)
Advanced Engineered Materials	(5	)	(1	)	—	—	(6	)
Consumer Specialties	—		—		—	—	—
Total Materials Solutions	(3	)	(1	)	—	—	(4	)

Industrial Specialties	(5	)	1		—	—	(4	)
Acetyl Intermediates	(1	)	(3	)	—	—	(4	)
Total Acetyl Chain	(2	)	(2	)	—	—	(4	)

Total Company	(3	)	(1	)	—	—	(4	)

Three Months Ended June 30, 2015 Compared to Three Months Ended March 31, 2015



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	2		—		(1	)	—	1
Consumer Specialties	11		(1	)	—		—	10
Total Materials Solutions	6		(1	)	(1	)	—	4

Industrial Specialties	6		(4	)	(1	)	—	1
Acetyl Intermediates	(1	)	1		(1	)	—	(1	)
Total Acetyl Chain	2		(1	)	(1	)	—	—

Total Company	3		(1	)	(1	)	1	2

Three Months Ended March 31, 2015 Compared to Three Months Ended December 31, 2014



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	6		2		(4	)	—	4
Consumer Specialties	(16	)	(2	)	—		—	(18	)
Total Materials Solutions	(4	)	—		(3	)	—	(7	)

Industrial Specialties	16		(4	)	(5	)	—	7
Acetyl Intermediates	1		(11	)	(3	)	—	(13	)
Total Acetyl Chain	5		(10	)	(4	)	1	(8	)

Total Company	2		(6	)	(4	)	1	(7	)

Three Months Ended December 31, 2014 Compared to Three Months Ended September 30, 2014



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	(6	)	(1	)	(2	)	—	(9	)
Consumer Specialties	(4	)	—		(1	)	—	(5	)
Total Materials Solutions	(5	)	(1	)	(1	)	—	(7	)

Industrial Specialties	(14	)	—		(2	)	—	(16	)
Acetyl Intermediates	(7	)	(5	)	(1	)	—	(13	)
Total Acetyl Chain	(9	)	(4	)	(2	)	1	(14	)

Total Company	(8	)	(3	)	(2	)	1	(12	)

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



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	(4	)	(1	)	(1	)	—	(6	)
Consumer Specialties	1		—		—		—	1
Total Materials Solutions	(2	)	—		(1	)	—	(3	)

Industrial Specialties	(5	)	1		(1	)	—	(5	)
Acetyl Intermediates	2		3		(1	)	—	4
Total Acetyl Chain	—		3		(1	)	—	2

Total Company	(1	)	2		(1	)	—	—

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	)
Total Materials Solutions	1		—		—	—		1

Industrial Specialties	2		4		—	—		6
Acetyl Intermediates	1		6		—	—		7
Total Acetyl Chain	2		6		—	(2	)	6

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		2	—	—		14
Consumer Specialties	—		2	—	—		2
Total Materials Solutions	7		2	—	—		9

Industrial Specialties	13		1	—	—		14
Acetyl Intermediates	(3	)	5	—	—		2
Total Acetyl Chain	1		4	—	(1	)	4

Total Company	3		3	—	(1	)	5

Table 4b

Factors Affecting Segment Net Sales Year Over Year - Unaudited

Three Months Ended December 31, 2015 Compared to Three Months Ended December 31, 2014



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	(2	)	1		(5	)	—	(6	)
Consumer Specialties	(8	)	(3	)	(1	)	—	(12	)
Total Materials Solutions	(5	)	(1	)	(3	)	—	(9	)

Industrial Specialties	8		(12	)	(6	)	—	(10	)
Acetyl Intermediates	—		(17	)	(5	)	1	(21	)
Total Acetyl Chain	2		(17	)	(5	)	3	(17	)

Total Company	(1	)	(11	)	(5	)	2	(15	)

Three Months Ended September 30, 2015 Compared to Three Months Ended September 30, 2014



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	(3	)	(1	)	(7	)	—	(11	)
Consumer Specialties	(10	)	(4	)	(1	)	—	(15	)
Total Materials Solutions	(7	)	(2	)	(4	)	—	(13	)

Industrial Specialties	—		(5	)	(8	)	—	(13	)
Acetyl Intermediates	(6	)	(15	)	(6	)	—	(27	)
Total Acetyl Chain	(5	)	(14	)	(7	)	2	(24	)

Total Company	(5	)	(10	)	(6	)	1	(20	)

Three Months Ended June 30, 2015 Compared to Three Months Ended June 30, 2014



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	(1	)	(1	)	(9	)	—	(11	)
Consumer Specialties	(10	)	(3	)	(1	)	—	(14	)
Total Materials Solutions	(5	)	(2	)	(5	)	—	(12	)

Industrial Specialties	(1	)	(4	)	(9	)	—	(14	)
Acetyl Intermediates	(4	)	(10	)	(8	)	—	(22	)
Total Acetyl Chain	(3	)	(10	)	(9	)	3	(19	)

Total Company	(4	)	(7	)	(8	)	2	(17	)

Three Months Ended March 31, 2015 Compared to Three Months Ended March 31, 2014



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	—		—		(8	)	—	(8	)
Consumer Specialties	(21	)	(3	)	(1	)	—	(25	)
Total Materials Solutions	(9	)	(2	)	(5	)	—	(16	)

Industrial Specialties	(4	)	3		(9	)	—	(10	)
Acetyl Intermediates	(2	)	(7	)	(6	)	—	(15	)
Total Acetyl Chain	(3	)	(5	)	(7	)	1	(14	)

Total Company	(6	)	(3	)	(7	)	1	(15	)

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



	Volume		Price		Currency		Other		Total
	(In percentages)
Advanced Engineered Materials	6		—		(4	)	—		2
Consumer Specialties	(5	)	(1	)	—		—		(6	)
Total Materials Solutions	1		(1	)	(2	)	—		(2	)

Industrial Specialties	(6	)	7		(4	)	—		(3	)
Acetyl Intermediates	(8	)	9		(3	)	—		(2	)
Total Acetyl Chain	(8	)	9		(3	)	(2	)	(4	)

Total Company	(5	)	5		(3	)	(1	)	(4	)

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



	Volume		Price		Currency	Other		Total
	(In percentages)
Advanced Engineered Materials	8		(2	)	—	—		6
Consumer Specialties	(8	)	2		—	—		(6	)
Total Materials Solutions	—		—		—	—		—

Industrial Specialties	(2	)	7		—	—		5
Acetyl Intermediates	1		17		—	—		18
Total Acetyl Chain	—		16		—	(3	)	13

Total Company	—		10		—	(2	)	8

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	)
Total Materials Solutions	1		—		1	—		2

Industrial Specialties	8		3		2	—		13
Acetyl Intermediates	(2	)	12		1	—		11
Total Acetyl Chain	1		10		2	(3	)	10

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
Total Materials Solutions	7		—		1	—		8

Industrial Specialties	6		—		2	—		8
Acetyl Intermediates	(3	)	5		2	—		4
Total Acetyl Chain	—		4		2	(1	)	5

Total Company	3		2		1	—		6

Table 4c

Factors Affecting Segment Net Sales Year Over Year - Unaudited

Year Ended December 31, 2015 Compared to Year Ended December 31, 2014



	Volume		Price		Currency		Other	Total
	(In percentages)
Advanced Engineered Materials	(1	)	(1	)	(7	)	—	(9	)
Consumer Specialties	(13	)	(3	)	(1	)	—	(17	)
Total Materials Solutions	(6	)	(2	)	(4	)	—	(12	)

Industrial Specialties	—		(4	)	(8	)	—	(12	)
Acetyl Intermediates	(3	)	(13	)	(6	)	—	(22	)
Total Acetyl Chain	(3	)	(11	)	(7	)	2	(19	)

Total Company	(4	)	(8	)	(6	)	1	(17	)

Year Ended December 31, 2014 Compared to Year Ended December 31, 2013



	Volume		Price		Currency	Other		Total
	(In percentages)
Advanced Engineered Materials	9		(1	)	—	—		8
Consumer Specialties	(5	)	1		—	—		(4	)
Total Materials Solutions	2		—		—	—		2

Industrial Specialties	1		5		—	—		6
Acetyl Intermediates	(3	)	11		—	—		8
Total Acetyl Chain	(2	)	10		—	(2	)	6

Total Company	—		6		—	(1	)	5

Table 5

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



	2015		Q4 '15		Q3 '15		Q2 '15		Q1 '15		2014		Q4 '14		Q3 '14		Q2 '14		Q1 '14
	(In $ millions, except percentages)
Net cash provided by (used in) operating activities	862		136		173		283		270		962		166		379		253		164
Capital expenditures on property, plant and equipment	(520	)	(89	)	(104	)	(165	)	(162	)	(678	)	(214	)	(191	)	(125	)	(148	)
Capital contributions from Mitsui & Co., Ltd. to Fairway Methanol LLC	214		27		32		75		80		264		70		46		39		109
Free cash flow	556		74		101		193		188		548		22		234		167		125

Net sales	5,674		1,334		1,413		1,477		1,450		6,802		1,559		1,769		1,769		1,705

Free cash flow as % of Net sales	9.8	%	5.5	%	7.1	%	13.1	%	13.0	%	8.1	%	1.4	%	13.2	%	9.4	%	7.3	%

Table 6

Cash Dividends Received - Unaudited



	2015	Q4 '15	Q3 '15	Q2 '15	Q1 '15	2014	Q4 '14	Q3 '14	Q2 '14	Q1 '14
	(In $ millions)
Dividends from equity method investments	176	54	5	29	88	148	6	29	48	65
Dividends from cost method investments	107	27	26	26	28	116	29	29	29	29
Total	283	81	31	55	116	264	35	58	77	94

Table 7

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



	2015		Q4 '15		Q3 '15		Q2 '15		Q1 '15		2014		Q4 '14		Q3 '14		Q2 '14		Q1 '14
	(In $ millions, except ratios)
Short-term borrowings and current installments of long-term debt - third party and affiliates	513		513		463		123		128		137		137		765		158		157
Long-term debt	2,468		2,468		2,522		2,532		2,515		2,586		2,586		2,612		2,859		2,858
Total debt	2,981		2,981		2,985		2,655		2,643		2,723		2,723		3,377		3,017		3,015
Cash and cash equivalents	(967	)	(967	)	(952	)	(988	)	(851	)	(780	)	(780	)	(1,510	)	(1,064	)	(998	)
Net debt	2,014		2,014		2,033		1,667		1,792		1,943		1,943		1,867		1,953		2,017

Operating EBITDA	1,515										1,558

Net debt / Operating EBITDA	1.3										1.2

Table 8

Certain Items - Unaudited

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



	2015		Q4 '15		Q3 '15	Q2 '15	Q1 '15	2014		Q4 '14		Q3 '14		Q2 '14		Q1 '14		Income Statement Classification
	(In $ millions)
Employee termination benefits	53		33		6	10	4	7		1		3		1		2		Other charges (gains), net
Plant/office closures	48		31		13	1	3	6		—		1		2		3		Other charges (gains), net / Cost of sales / SG&A
Singapore contract termination	174		174		—	—	—	—		—		—		—		—		Other charges (gains), net
Business optimization	20		4		6	5	5	8		5		3		—		—		Cost of sales / SG&A
Asset impairments	126		125		1	—	—	—		—		—		—		—		Other charges (gains), net
(Gain) loss on disposition of business and assets, net	5		—		—	5	—	3		—		—		3		—		(Gain) loss on disposition, net
Commercial disputes	6		—		5	—	1	(11	)	10		(21	)	—		—		Cost of sales / Other charges (gains), net
Kelsterbach plant relocation	—		—		—	—	—	(1	)	—		—		(1	)	—		(Gain) loss on disposition
InfraServ Hoechst restructuring	—		—		—	—	—	(48	)	—		—		(48	)	—		Equity in net (earnings) loss of affiliates
Write-off of other productive assets	39		—		—	39	—	5		—		—		5		—		Cost of sales / R&D
Employee benefit plan changes	4		(1	)	2	1	2	(155	)	(98	)	(20	)	(21	)	(16	)	Cost of sales / SG&A / R&D
Actuarial (gain) loss on pension and postretirement plans	127		126		—	1	—	349		349		—		—		—		Cost of sales / SG&A / R&D
Fairway Methanol LLC⁽¹⁾	10		(1	)	8	3	—	—		—		—		—		—		Cost of sales
Other	(1	)	(1	)	—	—	—	(15	)	(11	)	(1	)	(3	)	—		Various
Certain items attributable to Celanese Corporation	611		490		41	65	15	148		256		(35	)	(62	)	(11	)

______________________________


⁽¹⁾	Primarily associated with operational start-up costs.

Table 9

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



			2015				2014
			(In $ millions, except percentages)				(In $ millions, except percentages)
Adjusted EBIT⁽¹⁾			1,236				1,268
Adjusted effective tax rate			18	%			21	%
Adjusted EBIT tax effected			1,014				1,002

	2015	2014	Average		2014	2013	Average
	(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt - third parties and affiliates	513	137	325		137	177	157
Long-term debt	2,468	2,586	2,527		2,586	2,863	2,725
Celanese Corporation stockholders' equity	2,378	2,818	2,598		2,818	2,699	2,759
Invested capital			5,450				5,641

Return on invested capital			18.6	%			17.8	%

______________________________


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

Attached files

Stock widget

Investing forum

Celanese Corp Reports