XML 37 R16.htm IDEA: XBRL DOCUMENT v3.6.0.2
Investments in Affiliates
12 Months Ended
Dec. 31, 2016
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]  
Investments in Affiliates
Investments in Affiliates
Entities in which the Company has an investment accounted for under the cost or equity method of accounting are considered affiliates; any transactions or balances with such companies are considered affiliate transactions.
Equity Method
Equity method investments and ownership interests by business segment are as follows:
 
Ownership
as of
December 31,
 
Carrying
Value as of
December 31,
 
Share of
Earnings (Loss)
Year Ended
December 31,
 
Dividends and
Other Distributions
Year Ended
December 31,
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
(In percentages)
 
(In $ millions)
Advanced Engineered Materials
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ibn Sina
25
 
25
 
113

 
87

 
38

 
88

 
115

 
(18
)
 
(98
)
 
(85
)
Fortron Industries LLC
50
 
50
 
100

 
100

 
9

 
11

 
9

 
(9
)
 
(8
)
 
(7
)
Korea Engineering Plastics Co., Ltd.
50
 
50
 
137

 
127

 
25

 
16

 
10

 
(11
)
 
(10
)
 
(16
)
Polyplastics Co., Ltd.
45
 
45
 
156

 
168

 
50

 
35

 
27

 
(54
)
 
(20
)
 
(3
)
Other Activities(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
InfraServ GmbH & Co. Gendorf KG
39
 
39
 
38

 
37

 
7

 
7

 
9

 
(5
)
 
(5
)
 
(7
)
InfraServ GmbH & Co. Hoechst KG(2)
32
 
32
 
132

 
147

 
22

 
21

 
72

 
(30
)
 
(32
)
 
(26
)
InfraServ GmbH & Co. Knapsack KG
27
 
27
 
18

 
18

 
4

 
4

 
4

 
(4
)
 
(3
)
 
(4
)
Consumer Specialties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sherbrooke Capital Health and
Wellness, L.P.(3)
10
 
10
 
3

 
3

 

 
(1
)
 

 

 

 

Total
 
 
 
 
697

 
687

 
155

 
181

 
246

 
(131
)
 
(176
)
 
(148
)
______________________________
(1) 
InfraServ real estate service companies ("InfraServ Entities") own and operate sites in Frankfurt am Main-Hoechst, Gendorf and Knapsack, Germany. The InfraServ Entities were created to own land and property and to provide various technical and administrative services at these manufacturing locations.
(2) 
InfraServ GmbH & Co. Hoechst KG is owned primarily by an entity included in the Company's Other Activities. The Company's Consumer Specialties segment and Acetyl Intermediates segment also each hold an ownership percentage. During the three months ended June 30, 2014, InfraServ GmbH & Co. Hoechst KG restructured the debt of a subsidiary resulting in additional equity in net earnings of affiliates of $48 million.
(3) 
The Company accounts for its ownership interest in Sherbrooke Capital Health and Wellness, L.P. under the equity method of accounting because the Company is able to exercise significant influence.
Cost Method
Cost method investments and ownership interests by business segment are as follows:
 
Ownership
as of
December 31,
 
Carrying
Value
as of
December 31,
 
Dividend
Income for the
Year Ended
December 31,
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2014
 
(In percentages)
 
(In $ millions)
Consumer Specialties
 
 
 
 
 
 
 
 
 
 
 
 
 
Kunming Cellulose Fibers Co. Ltd.
30
 
30
 
14

 
14

 
14

 
14

 
15

Nantong Cellulose Fibers Co. Ltd.
31
 
31
 
106

 
106

 
80

 
79

 
87

Zhuhai Cellulose Fibers Co. Ltd.
30
 
30
 
30

 
22

 
13

 
13

 
13

Other Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
InfraServ GmbH & Co. Wiesbaden KG
8
 
8
 
5

 
5

 
1

 
1

 
1

Other
 
 
 
 

 
4

 

 

 

Total
 
 
 
 
155

 
151

 
108

 
107

 
116


Transactions with Affiliates
The Company owns manufacturing facilities at the InfraServ location in Frankfurt am Main-Hoechst, Germany and has contractual agreements with the InfraServ Entities and certain other equity affiliates and investees accounted for under the cost method. These contractual agreements primarily relate to energy purchases, site services and purchases of product for consumption and resale.
Transactions and balances with affiliates are as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
(In $ millions)
Purchases
203

 
195

 
231

Sales
2

 

 


 
As of December 31,
 
2016
 
2015
 
(In $ millions)
Non-trade receivables
26

 
23

Total due from affiliates
26

 
23

 
 
 
 
Short-term borrowings(1)
17

 
16

Trade payables
45

 
34

Current Other liabilities
8

 
6

Total due to affiliates
70

 
56

______________________________
(1) 
The Company has agreements with certain affiliates whereby excess affiliate cash is lent to and managed by the Company at variable interest rates governed by those agreements.