Consolidating Guarantor Financial Information

6 Months Ended

Jun. 30, 2011

Consolidating Guarantor Financial Information [Abstract]

Consolidating Guarantor Financial Information

21. Consolidating Guarantor Financial Information

The 6.625% Notes and the 5.875% Notes (collectively, the "Notes") were issued by Celanese US (the "Issuer") and are guaranteed by Celanese Corporation (the "Parent Guarantor") and the Subsidiary Guarantors (Note 9). The Issuer and Subsidiary Guarantors are 100% owned subsidiaries of the Parent Guarantor. The Parent Guarantor and Subsidiary Guarantors have guaranteed the Notes fully and unconditionally and jointly and severally.

For cash management purposes, the Company transfers cash between Parent Guarantor, Issuer, Subsidiary Guarantors and non-guarantors through intercompany financing arrangements, contributions or declaration of dividends between the respective parent and its subsidiaries. The transfer of cash under these activities facilitates the ability of the recipient to make specified third-party payments. As a result, the Company presents such intercompany financing activities, contributions and dividends within the category where the ultimate use of cash to third parties is presented in the accompanying unaudited interim consolidated statements of cash flows.

The Company has not presented separate financial information and other disclosures for each of its Subsidiary Guarantors because it believes such financial information and other disclosures would not provide investors with any additional information that would be material in evaluating the sufficiency of the guarantees.

The unaudited interim consolidating financial statements for the Parent Guarantor, the Issuer, the Subsidiary Guarantors and the non-guarantors are as follows:

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF OPERATIONS

	Three Months Ended June 30, 2011
	Parent					Subsidiary			Non-
	Guarantor		Issuer			Guarantors			Guarantors			Eliminations			Consolidated
	(In $ millions)
Net sales		-		-			660			1,380			(287	)		1,753
Cost of sales		-		-			(472	)		(1,154	)		283			(1,343	)
Gross profit		-		-			188			226			(4	)		410
Selling, general and administrative expenses		-		-			(41	)		(99	)		-			(140	)
Amortization of intangible assets		-		-			(5	)		(12	)		-			(17	)
Research and development expenses		-		-			(17	)		(8	)		-			(25	)
Other (charges) gains, net		-		-			6			(24	)		-			(18	)
Foreign exchange gain (loss), net		-		-			-			(1	)		-			(1	)
Gain (loss) on disposition of businesses and assets, net		-		-			1			(1	)		-			-
Operating profit (loss)		-		-			132			81			(4	)		209
Equity in net earnings (loss) of affiliates		202		246			27			35			(464	)		46
Interest expense		-		(56	)		(9	)		(9	)		17			(57	)
Refinancing expense		-		(3	)		-			-			-			(3	)
Interest income		-		5			10			2			(17	)		-
Dividend income — cost investments		-		-			-			79			-			79
Other income (expense), net		-		1			(1	)		6			-			6
Earnings (loss) from continuing operations before tax		202		193			159			194			(468	)		280
Income tax (provision) benefit		1		9			(49	)		(37	)		1			(75	)
Earnings (loss) from continuing operations		203		202			110			157			(467	)		205
Earnings (loss) from operation of discontinued operations		-		-			(3	)		-			-			(3	)
Gain (loss) on disposition of discontinued operations		-		-			-			-			-			-
Income tax (provision) benefit from discontinued operations		-		-			1			-			-			1
Earnings (loss) from discontinued operations		-		-			(2	)		-			-			(2	)
Net earnings (loss)		203		202			108			157			(467	)		203
Net (earnings) loss attributable to noncontrolling interests		-		-			-			-			-			-
Net earnings (loss) attributable to Celanese Corporation		203		202			108			157			(467	)		203

	Three Months Ended June 30, 2010
	Parent					Subsidiary			Non-
	Guarantor		Issuer			Guarantors			Guarantors			Eliminations			Consolidated
	(In $ millions)
Net sales		-		-			551			1,170			(204	)		1,517
Cost of sales		-		-			(428	)		(992	)		206			(1,214	)
Gross profit		-		-			123			178			2			303
Selling, general and administrative expenses		-		-			(43	)		(81	)		-			(124	)
Amortization of intangible assets		-		-			(4	)		(11	)		-			(15	)
Research and development expenses		-		-			(10	)		(7	)		-			(17	)
Other (charges) gains, net		-		-			2			(8	)		-			(6	)
Foreign exchange gain (loss), net		-		-			-			-			-			-
Gain (loss) on disposition of businesses and assets, net		-		-			-			15			-			15
Operating profit (loss)		-		-			68			86			2			156
Equity in net earnings (loss) of affiliates		160		192			39			36			(382	)		45
Interest expense		-		(41	)		(10	)		(11	)		13			(49	)
Refinancing expense		-		-			-			-			-			-
Interest income		-		5			7			2			(13	)		1
Dividend income — cost investments		-		-			-			72			-			72
Other income (expense), net		-		(2	)		-			1			-			(1	)
Earnings (loss) from continuing operations before tax		160		154			104			186			(380	)		224
Income tax (provision) benefit		-		6			(32	)		(50	)		15			(61	)
Earnings (loss) from continuing operations		160		160			72			136			(365	)		163
Earnings (loss) from operation of discontinued operations		-		-			(5	)		-			-			(5	)
Gain (loss) on disposition of discontinued operations		-		-			-			-			-			-
Income tax (provision) benefit from discontinued operations		-		-			2			-			-			2
Earnings (loss) from discontinued operations		-		-			(3	)		-			-			(3	)
Net earnings (loss)		160		160			69			136			(365	)		160
Net (earnings) loss attributable to noncontrolling interests		-		-			-			-			-			-
Net earnings (loss) attributable to Celanese Corporation		160		160			69			136			(365	)		160

	Six Months Ended June 30, 2011
	Parent					Subsidiary			Non-
	Guarantor		Issuer			Guarantors			Guarantors			Eliminations			Consolidated
	(In $ millions)
Net sales		-		-			1,275			2,611			(544	)		3,342
Cost of sales		-		-			(908	)		(2,205	)		532			(2,581	)
Gross profit		-		-			367			406			(12	)		761
Selling, general and administrative expenses		-		-			(80	)		(188	)		-			(268	)
Amortization of intangible assets		-		-			(9	)		(24	)		-			(33	)
Research and development expenses		-		-			(30	)		(18	)		-			(48	)
Other (charges) gains, net		-		-			25			(40	)		-			(15	)
Foreign exchange gain (loss), net		-		-			-			-			-			-
Gain (loss) on disposition of businesses and assets, net		-		-			1			(1	)		-			-
Operating profit (loss)		-		-			274			135			(12	)		397
Equity in net earnings (loss) of affiliates		344		424			55			71			(805	)		89
Interest expense		-		(107	)		(21	)		(19	)		35			(112	)
Refinancing expense		-		(3	)		-			-			-			(3	)
Interest income		-		11			19			6			(35	)		1
Dividend income — cost investments		-		-			-			79			-			79
Other income (expense), net		-		3			(1	)		7			-			9
Earnings (loss) from continuing operations before tax		344		328			326			279			(817	)		460
Income tax (provision) benefit		1		16			(93	)		(43	)		2			(117	)
Earnings (loss) from continuing operations		345		344			233			236			(815	)		343
Earnings (loss) from operation of discontinued operations		-		-			3			-			-			3
Gain (loss) on disposition of discontinued operations		-		-			-			-			-			-
Income tax (provision) benefit from discontinued operations		-		-			(1	)		-			-			(1	)
Earnings (loss) from discontinued operations		-		-			2			-			-			2
Net earnings (loss)		345		344			235			236			(815	)		345
Net (earnings) loss attributable to noncontrolling interests		-		-			-			-			-			-
Net earnings (loss) attributable to Celanese Corporation		345		344			235			236			(815	)		345

	Six Months Ended June 30, 2010
	Parent					Subsidiary			Non-
	Guarantor		Issuer			Guarantors			Guarantors			Eliminations			Consolidated
	(In $ millions)
Net sales		-		-			1,103			2,237			(435	)		2,905
Cost of sales		-		-			(858	)		(1,969	)		443			(2,384	)
Gross profit		-		-			245			268			8			521
Selling, general and administrative expenses		-		-			(90	)		(158	)		-			(248	)
Amortization of intangible assets		-		-			(6	)		(24	)		-			(30	)
Research and development expenses		-		-			(20	)		(15	)		-			(35	)
Other (charges) gains, net		-		-			11			(94	)		-			(83	)
Foreign exchange gain (loss), net		-		-			-			2			-			2
Gain (loss) on disposition of businesses and assets, net		-		-			-			15			-			15
Operating profit (loss)		-		-			140			(6	)		8			142
Equity in net earnings (loss) of affiliates		174		231			66			69			(446	)		94
Interest expense		-		(80	)		(19	)		(23	)		24			(98	)
Refinancing expense		-		-			-			-			-			-
Interest income		-		10			13			3			(24	)		2
Dividend income — cost investments		-		-			-			72			-			72
Other income (expense), net		-		(1	)		(1	)		7			-			5
Earnings (loss) from continuing operations before tax		174		160			199			122			(438	)		217
Income tax (provision) benefit		-		14			(44	)		(27	)		16			(41	)
Earnings (loss) from continuing operations		174		174			155			95			(422	)		176
Earnings (loss) from operation of discontinued operations		-		-			(5	)		-			-			(5	)
Gain (loss) on disposition of discontinued operations		-		-			2			-			-			2
Income tax (provision) benefit from discontinued operations		-		-			1			-			-			1
Earnings (loss) from discontinued operations		-		-			(2	)		-			-			(2	)
Net earnings (loss)		174		174			153			95			(422	)		174
Net (earnings) loss attributable to noncontrolling interests		-		-			-			-			-			-
Net earnings (loss) attributable to Celanese Corporation		174		174			153			95			(422	)		174

	As of June 30, 2011
	Parent						Subsidiary		Non-
	Guarantor			Issuer			Guarantors		Guarantors		Eliminations			Consolidated
	(In $ millions)
ASSETS
Current assets
Cash and cash equivalents		1			-			174		566		-			741
Trade receivables — third party and affiliates		-			-			314		853		(140	)		1,027
Non-trade receivables, net		-			85			1,639		500		(1,985	)		239
Inventories, net		-			-			188		639		(48	)		779
Deferred income taxes		-			25			33		37		-			95
Marketable securities, at fair value		-			-			70		-		-			70
Assets held for sale		-			-			-		-		-			-
Other assets		-			2			24		53		(16	)		63
Total current assets		1			112			2,442		2,648		(2,189	)		3,014
Investments in affiliates		1,348			4,236			1,432		545		(6,723	)		838
Property, plant and equipment, net		-			-			665		2,608		-			3,273
Deferred income taxes		-			13			399		22		-			434
Other assets		-			618			125		314		(748	)		309
Goodwill		-			-			298		515		-			813
Intangible assets, net		-			-			77		161		-			238
Total assets		1,349			4,979			5,438		6,813		(9,660	)		8,919
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings and current installments of long-term debt — third party and affiliates		-			1,444			133		220		(1,642	)		155
Trade payables — third party and affiliates		-			-			283		643		(140	)		786
Other liabilities		-			74			374		496		(369	)		575
Deferred income taxes		-			-			-		30		-			30
Income taxes payable		(28	)		(326	)		403		49		(3	)		95
Total current liabilities		(28	)		1,192			1,193		1,438		(2,154	)		1,641
Long-term debt		-			2,410			884		343		(744	)		2,893
Deferred income taxes		-			-			-		124		-			124
Uncertain tax positions		4			18			29		239		-			290
Benefit obligations		-			-			1,189		132		-			1,321
Other liabilities		-			11			103		1,178		(15	)		1,277
Total Celanese Corporation shareholders' equity		1,373			1,348			2,040		3,359		(6,747	)		1,373
Noncontrolling interests		-			-			-		-		-			-
Total shareholders' equity		1,373			1,348			2,040		3,359		(6,747	)		1,373
Total liabilities and shareholders' equity		1,349			4,979			5,438		6,813		(9,660	)		8,919

	As of December 31, 2010
	Parent						Subsidiary		Non-
	Guarantor			Issuer			Guarantors		Guarantors		Eliminations			Consolidated
	(In $ millions)
ASSETS
Current assets
Cash and cash equivalents		-			-			128		612		-			740
Trade receivables — third party and affiliates		-			-			246		672		(91	)		827
Non-trade receivables, net		-			10			1,400		515		(1,672	)		253
Inventories, net		-			-			164		484		(38	)		610
Deferred income taxes		-			25			33		34		-			92
Marketable securities, at fair value		-			-			77		1		-			78
Assets held for sale		-			-			9		-		-			9
Other assets		-			48			33		43		(65	)		59
Total current assets		-			83			2,090		2,361		(1,866	)		2,668
Investments in affiliates		903			3,721			1,413		530		(5,729	)		838
Property, plant and equipment, net		-			-			650		2,367		-			3,017
Deferred income taxes		-			19			404		20		-			443
Other assets		-			614			125		389		(839	)		289
Goodwill		-			-			297		477		-			774
Intangible assets, net		-			-			79		173		-			252
Total assets		903			4,437			5,058		6,317		(8,434	)		8,281
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings and current installments of long-term debt — third party and affiliates		-			1,227			137		190		(1,326	)		228
Trade payables — third party and affiliates		-			-			249		515		(91	)		673
Other liabilities		-			87			385		544		(420	)		596
Deferred income taxes		-			-			-		28		-			28
Income taxes payable		(26	)		(309	)		314		39		(1	)		17
Total current liabilities		(26	)		1,005			1,085		1,316		(1,838	)		1,542
Long-term debt		-			2,498			980		346		(834	)		2,990
Deferred income taxes		-			-			-		116		-			116
Uncertain tax positions		3			17			28		225		-			273
Benefit obligations		-			-			1,230		129		-			1,359
Other liabilities		-			14			123		954		(16	)		1,075
Total Celanese Corporation shareholders' equity		926			903			1,612		3,231		(5,746	)		926
Noncontrolling interests		-			-			-		-		-			-
Total shareholders' equity		926			903			1,612		3,231		(5,746	)		926
Total liabilities and shareholders' equity		903			4,437			5,058		6,317		(8,434	)		8,281

	Six Months Ended June 30, 2011
	Parent						Subsidiary			Non-
	Guarantor			Issuer			Guarantors			Guarantors			Eliminations			Consolidated
	(In $ millions)
Net cash provided by (used in) operating activities		-			-			175			141			-			316
Investing activities
Capital expenditures on property, plant and equipment		-			-			(63	)		(88	)		-			(151	)
Acquisitions, net of cash acquired		-			-			(8	)		-			-			(8	)
Proceeds from sale of businesses and assets, net		-			-			1			4			-			5
Deferred proceeds from Ticona Kelsterbach plant relocation		-			-			-			158			-			158
Capital expenditures related to Ticona Kelsterbach plant relocation		-			-			-			(114	)		-			(114	)
Other, net		-			-			(2	)		(21	)		-			(23	)
Net cash provided by (used in) investing activities		-			-			(72	)		(61	)		-			(133	)
Financing activities
Short-term borrowings (repayments), net		-			-			(8	)		(26	)		-			(34	)
Proceeds from long-term debt		-			400			-			11			-			411
Repayments of long-term debt		-			(525	)		(1	)		(27	)		-			(553	)
Refinancing costs		-			(8	)		-			-			-			(8	)
Proceeds and repayments from intercompany financing activities		-			133			(133	)		-			-			-
Purchases of treasury stock, including related fees		(13	)		-			-			-			-			(13	)
Dividends from subsidiary		13			113			-			-			(126	)		-
Dividends to parent		-			(13	)		(13	)		(100	)		126			-
Contributions from parent to subsidiary		-			(100	)		100			-			-			-
Stock option exercises		17			-			-			-			-			17
Series A common stock dividends		(16	)		-			-			-			-			(16	)
Preferred stock dividends		-			-			-			-			-			-
Other, net		-			-			(2	)		-			-			(2	)
Net cash provided by (used in) financing activities		1			-			(57	)		(142	)		-			(198	)
Exchange rate effects on cash and cash equivalents		-			-			-			16			-			16
Net increase (decrease) in cash and cash equivalents		1			-			46			(46	)		-			1
Cash and cash equivalents at beginning of period		-			-			128			612			-			740
Cash and cash equivalents at end of period		1			-			174			566			-			741

	Six Months Ended June 30, 2010
	Parent						Subsidiary			Non-
	Guarantor			Issuer			Guarantors			Guarantors			Eliminations			Consolidated
	(In $ millions)
Net cash provided by (used in) operating activities		-			-			(48	)		267			-			219
Investing activities
Capital expenditures on property, plant and equipment		-			-			(32	)		(46	)		-			(78	)
Acquisitions, net of cash acquired		-			-			(46	)		-			-			(46	)
Proceeds from sale of businesses and assets, net		-			-			-			20			-			20
Deferred proceeds from Ticona Kelsterbach plant relocation		-			-			-			-			-			-
Capital expenditures related to Ticona Kelsterbach plant relocation		-			-			-			(151	)		-			(151	)
Other, net		-			-			(5	)		(15	)		-			(20	)
Net cash provided by (used in) investing activities		-			-			(83	)		(192	)		-			(275	)
Financing activities
Short-term borrowings (repayments), net		-			-			2			(11	)		-			(9	)
Proceeds from long term debt		-			-			-			-			-			-
Repayments of long-term debt		-			(14	)		(1	)		(23	)		-			(38	)
Refinancing costs		-			-			-			-			-			-
Proceeds and repayments from intercompany financing activities		-			14			19			(33	)		-			-
Purchases of treasury stock, including related fees		(20	)		-			-			-			-			(20	)
Dividends from subsidiary		26			26			-			-			(52	)		-
Dividends to parent		-			(26	)		(26	)		-			52			-
Contributions from parent to subsidiary		-			-			-			-			-			-
Stock option exercises		4			-			-			-			-			4
Series A common stock dividends		(12	)		-			-			-			-			(12	)
Preferred stock dividends		(3	)		-			-			-			-			(3	)
Other, net		-			-			-			-			-			-
Net cash provided by (used in) financing activities		(5	)		-			(6	)		(67	)		-			(78	)
Exchange rate effects on cash and cash equivalents		-			-			-			(39	)		-			(39	)
Net increase (decrease) in cash and cash equivalents		(5	)		-			(137	)		(31	)		-			(173	)
Cash and cash equivalents at beginning of period		5			-			520			729			-			1,254
Cash and cash equivalents at end of period		-			-			383			698			-			1,081