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Consolidating Guarantor Financial Information
3 Months Ended
Mar. 31, 2017
Consolidating Guarantor Financial Information [Abstract]  
Consolidating Guarantor Financial Information
Consolidating Guarantor Financial Information
The Senior Notes were issued by Celanese US ("Issuer") and are guaranteed by Celanese Corporation ("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 the 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 for principal and interest on the Company's outstanding debt, Common Stock dividends and Common Stock repurchases. The unaudited interim consolidating statements of cash flows for the three months ended March 31, 2017 and 2016 present such intercompany financing activities, contributions and dividends consistent with how such activity would be presented in a stand-alone statement 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 STATEMENT OF OPERATIONS
 
Three Months Ended March 31, 2017
 
Parent
Guarantor
 
Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(In $ millions)
Net sales
—

 
—

 
589

 
1,177

 
(295
)
 
1,471

Cost of sales
—

 
—

 
(443
)
 
(966
)
 
290

 
(1,119
)
Gross profit
—

 
—

 
146

 
211

 
(5
)
 
352

Selling, general and administrative expenses
—

 
—

 
(16
)
 
(67
)
 
—

 
(83
)
Amortization of intangible assets
—

 
—

 
(1
)
 
(3
)
 
—

 
(4
)
Research and development expenses
—

 
—

 
(7
)
 
(10
)
 
—

 
(17
)
Other (charges) gains, net
—

 
—

 
(6
)
 
(49
)
 
—

 
(55
)
Foreign exchange gain (loss), net
—

 
—

 
—

 
—

 
—

 
—

Gain (loss) on disposition of businesses and assets, net
—

 
—

 
(2
)
 
1

 
—

 
(1
)
Operating profit (loss)
—

 
—

 
114

 
83

 
(5
)
 
192

Equity in net earnings (loss) of affiliates
183

 
174

 
101

 
43

 
(454
)
 
47

Interest expense
—

 
(6
)
 
(23
)
 
(7
)
 
7

 
(29
)
Refinancing expense
—

 
—

 
—

 
—

 
—

 
—

Interest income
—

 
6

 
1

 
—

 
(7
)
 
—

Dividend income - cost investments
—

 
—

 
—

 
29

 
—

 
29

Other income (expense), net
—

 
—

 
—

 
1

 
—

 
1

Earnings (loss) from continuing operations before tax
183

 
174

 
193

 
149

 
(459
)
 
240

Income tax (provision) benefit
—

 
9

 
(63
)
 
1

 
(3
)
 
(56
)
Earnings (loss) from continuing operations
183

 
183

 
130

 
150

 
(462
)
 
184

Earnings (loss) from operation of discontinued operations
—

 
—

 
—

 
—

 
—

 
—

Income tax (provision) benefit from discontinued operations
—

 
—

 
—

 
—

 
—

 
—

Earnings (loss) from discontinued operations
—

 
—

 
—

 
—

 
—

 
—

Net earnings (loss)
183

 
183

 
130

 
150

 
(462
)
 
184

Net (earnings) loss attributable to noncontrolling interests
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Net earnings (loss) attributable to Celanese Corporation
183

 
183

 
130

 
149

 
(462
)
 
183

CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS
 
Three Months Ended March 31, 2016
 
Parent
Guarantor
 
Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(In $ millions)
Net sales
—

 
—

 
583

 
1,139

 
(318
)
 
1,404

Cost of sales
—

 
—

 
(441
)
 
(891
)
 
318

 
(1,014
)
Gross profit
—

 
—

 
142

 
248

 
—

 
390

Selling, general and administrative expenses
—

 
—

 
(17
)
 
(63
)
 
—

 
(80
)
Amortization of intangible assets
—

 
—

 
(1
)
 
(1
)
 
—

 
(2
)
Research and development expenses
—

 
—

 
(8
)
 
(11
)
 
—

 
(19
)
Other (charges) gains, net
—

 
—

 
—

 
(5
)
 
—

 
(5
)
Foreign exchange gain (loss), net
—

 
—

 
—

 
3

 
—

 
3

Gain (loss) on disposition of businesses and assets, net
—

 
—

 
(1
)
 
1

 
—

 
—

Operating profit (loss)
—

 
—

 
115

 
172

 
—

 
287

Equity in net earnings (loss) of affiliates
256

 
274

 
173

 
37

 
(702
)
 
38

Interest expense
—

 
(15
)
 
(15
)
 
(8
)
 
5

 
(33
)
Refinancing expense
—

 
—

 
(2
)
 
—

 
—

 
(2
)
Interest income
—

 
2

 
1

 
2

 
(4
)
 
1

Dividend income - cost investments
—

 
—

 
—

 
27

 
—

 
27

Other income (expense), net
—

 
—

 
—

 
—

 
—

 
—

Earnings (loss) from continuing operations before tax
256

 
261

 
272

 
230

 
(701
)
 
318

Income tax (provision) benefit
—

 
(5
)
 
(30
)
 
(25
)
 
—

 
(60
)
Earnings (loss) from continuing operations
256

 
256

 
242

 
205

 
(701
)
 
258

Earnings (loss) from operation of discontinued operations
—

 
—

 
—

 
1

 
—

 
1

Income tax (provision) benefit from discontinued operations
—

 
—

 
—

 
—

 
—

 
—

Earnings (loss) from discontinued operations
—

 
—

 
—

 
1

 
—

 
1

Net earnings (loss)
256

 
256

 
242

 
206

 
(701
)
 
259

Net (earnings) loss attributable to noncontrolling interests
—

 
—

 
—

 
(2
)
 
—

 
(2
)
Net earnings (loss) attributable to Celanese Corporation
256

 
256

 
242

 
204

 
(701
)
 
257


CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
Three Months Ended March 31, 2017
 
Parent
Guarantor
 
Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(In $ millions)
Net earnings (loss)
183

 
183

 
130

 
150

 
(462
)
 
184

Other comprehensive income (loss), net of tax
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on marketable securities
—

 
—

 
—

 
—

 
—

 
—

Foreign currency translation
28

 
28

 
30

 
39

 
(97
)
 
28

Gain (loss) on cash flow hedges
(2
)
 
(2
)
 
(2
)
 
(2
)
 
6

 
(2
)
Pension and postretirement benefits
5

 
5

 
4

 
6

 
(15
)
 
5

Total other comprehensive income (loss), net of tax
31

 
31

 
32

 
43

 
(106
)
 
31

Total comprehensive income (loss), net of tax
214

 
214

 
162

 
193

 
(568
)
 
215

Comprehensive (income) loss attributable to noncontrolling interests
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Comprehensive income (loss) attributable to Celanese Corporation
214

 
214

 
162

 
192

 
(568
)
 
214

 
Three Months Ended March 31, 2016
 
Parent
Guarantor
 
Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(In $ millions)
Net earnings (loss)
256

 
256

 
242

 
206

 
(701
)
 
259

Other comprehensive income (loss), net of tax
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on marketable securities
1

 
1

 
—

 
1

 
(2
)
 
1

Foreign currency translation
64

 
64

 
54

 
82

 
(200
)
 
64

Gain (loss) on cash flow hedges
—

 
—

 
—

 
—

 
—

 
—

Pension and postretirement benefits
—

 
—

 
—

 
1

 
(1
)
 
—

Total other comprehensive income (loss), net of tax
65

 
65

 
54

 
84

 
(203
)
 
65

Total comprehensive income (loss), net of tax
321

 
321

 
296

 
290

 
(904
)
 
324

Comprehensive (income) loss attributable to noncontrolling interests
—

 
—

 
—

 
(2
)
 
—

 
(2
)
Comprehensive income (loss) attributable to Celanese Corporation
321

 
321

 
296

 
288

 
(904
)
 
322


CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATING BALANCE SHEET
 
As of March 31, 2017
 
Parent
Guarantor
 
Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(In $ millions)
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
—

 
—

 
56

 
445

 
—

 
501

Trade receivables - third party and affiliates
—

 
—

 
137

 
919

 
(170
)
 
886

Non-trade receivables, net
40

 
516

 
257

 
317

 
(914
)
 
216

Inventories, net
—

 
—

 
249

 
517

 
(49
)
 
717

Marketable securities, at fair value
—

 
—

 
31

 
—

 
—

 
31

Other assets
—

 
34

 
10

 
54

 
(60
)
 
38

Total current assets
40

 
550

 
740

 
2,252

 
(1,193
)
 
2,389

Investments in affiliates
2,575

 
4,052

 
3,642

 
769

 
(10,164
)
 
874

Property, plant and equipment, net
—

 
—

 
1,059

 
2,512

 
—

 
3,571

Deferred income taxes
—

 
—

 
84

 
80

 
(10
)
 
154

Other assets
—

 
705

 
130

 
160

 
(687
)
 
308

Goodwill
—

 
—

 
314

 
486

 
—

 
800

Intangible assets, net
—

 
—

 
47

 
145

 
—

 
192

Total assets
2,615

 
5,307

 
6,016

 
6,404

 
(12,054
)
 
8,288

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings and current installments of long-term debt - third party and affiliates
—

 
13

 
140

 
254

 
(300
)
 
107

Trade payables - third party and affiliates
4

 
—

 
258

 
523

 
(170
)
 
615

Other liabilities
—

 
49

 
136

 
221

 
(144
)
 
262

Income taxes payable
—

 
—

 
511

 
48

 
(528
)
 
31

Total current liabilities
4

 
62

 
1,045

 
1,046

 
(1,142
)
 
1,015

Noncurrent Liabilities
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
—

 
2,657

 
727

 
161

 
(694
)
 
2,851

Deferred income taxes
—

 
13

 
—

 
137

 
(10
)
 
140

Uncertain tax positions
—

 
—

 
4

 
136

 
(2
)
 
138

Benefit obligations
—

 
—

 
610

 
256

 
—

 
866

Other liabilities
—

 
—

 
65

 
173

 
(1
)
 
237

Total noncurrent liabilities
—

 
2,670

 
1,406

 
863

 
(707
)
 
4,232

Total Celanese Corporation stockholders' equity
2,611

 
2,575

 
3,565

 
4,065

 
(10,205
)
 
2,611

Noncontrolling interests
—

 
—

 
—

 
430

 
—

 
430

Total equity
2,611

 
2,575

 
3,565

 
4,495

 
(10,205
)
 
3,041

Total liabilities and equity
2,615

 
5,307

 
6,016

 
6,404

 
(12,054
)
 
8,288

CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATING BALANCE SHEET
 
As of December 31, 2016
 
Parent
Guarantor
 
Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(In $ millions)
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
—

 
—

 
51

 
587

 
—

 
638

Trade receivables - third party and affiliates
—

 
—

 
107

 
819

 
(125
)
 
801

Non-trade receivables, net
40

 
499

 
249

 
308

 
(873
)
 
223

Inventories, net
—

 
—

 
239

 
526

 
(45
)
 
720

Marketable securities, at fair value
—

 
—

 
30

 
—

 
—

 
30

Other assets
—

 
42

 
25

 
76

 
(83
)
 
60

Total current assets
40

 
541

 
701

 
2,316

 
(1,126
)
 
2,472

Investments in affiliates
2,548

 
4,029

 
3,655

 
752

 
(10,132
)
 
852

Property, plant and equipment, net
—

 
—

 
1,049

 
2,528

 
—

 
3,577

Deferred income taxes
—

 
—

 
91

 
86

 
(18
)
 
159

Other assets
—

 
705

 
133

 
156

 
(687
)
 
307

Goodwill
—

 
—

 
314

 
482

 
—

 
796

Intangible assets, net
—

 
—

 
48

 
146

 
—

 
194

Total assets
2,588

 
5,275

 
5,991

 
6,466

 
(11,963
)
 
8,357

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings and current installments of long-term debt - third party and affiliates
—

 
6

 
133

 
250

 
(271
)
 
118

Trade payables - third party and affiliates
—

 
—

 
226

 
524

 
(125
)
 
625

Other liabilities
—

 
58

 
167

 
262

 
(165
)
 
322

Income taxes payable
—

 
—

 
454

 
75

 
(517
)
 
12

Total current liabilities
—

 
64

 
980

 
1,111

 
(1,078
)
 
1,077

Noncurrent Liabilities
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
—

 
2,647

 
727

 
210

 
(694
)
 
2,890

Deferred income taxes
—

 
16

 
—

 
132

 
(18
)
 
130

Uncertain tax positions
—

 
—

 
3

 
130

 
(2
)
 
131

Benefit obligations
—

 
—

 
636

 
257

 
—

 
893

Other liabilities
—

 
—

 
74

 
142

 
(1
)
 
215

Total noncurrent liabilities
—

 
2,663

 
1,440

 
871

 
(715
)
 
4,259

Total Celanese Corporation stockholders' equity
2,588

 
2,548

 
3,571

 
4,051

 
(10,170
)
 
2,588

Noncontrolling interests
—

 
—

 
—

 
433

 
—

 
433

Total equity
2,588

 
2,548

 
3,571

 
4,484

 
(10,170
)
 
3,021

Total liabilities and equity
2,588

 
5,275

 
5,991

 
6,466

 
(11,963
)
 
8,357


CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS
 
Three Months Ended March 31, 2017
 
Parent
Guarantor
 
Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(In $ millions)
Net cash provided by (used in) operating activities
179

 
196

 
210

 
130

 
(523
)
 
192

Investing Activities
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures on property, plant and equipment
—

 
—

 
(42
)
 
(20
)
 
—

 
(62
)
Acquisitions, net of cash acquired
—

 
(11
)
 
—

 
—

 
11

 
—

Proceeds from sale of businesses and assets, net
—

 
—

 
—

 
12

 
(11
)
 
1

Return of capital from subsidiary
—

 
—

 
5

 
—

 
(5
)
 
—

Contributions to subsidiary
—

 
—

 
—

 
—

 
—

 
—

Intercompany loan receipts (disbursements)
—

 
—

 
7

 
—

 
(7
)
 
—

Other, net
—

 
—

 
—

 
(3
)
 
—

 
(3
)
Net cash provided by (used in) investing activities
—

 
(11
)
 
(30
)
 
(11
)
 
(12
)
 
(64
)
Financing Activities
 

 
 

 
 

 
 

 
 

 
 

Net change in short-term borrowings with maturities of 3 months or less
—

 
(7
)
 
6

 
—

 
7

 
6

Proceeds from short-term borrowings
—

 
—

 
—

 
7

 
—

 
7

Repayments of short-term borrowings
—

 
—

 
—

 
(29
)
 
—

 
(29
)
Proceeds from long-term debt
—

 
—

 
—

 
—

 
—

 
—

Repayments of long-term debt
—

 
—

 
—

 
(53
)
 
—

 
(53
)
Purchases of treasury stock, including related fees
(128
)
 
—

 
—

 
—

 
—

 
(128
)
Dividends to parent
—

 
(178
)
 
(165
)
 
(180
)
 
523

 
—

Contributions from parent
—

 
—

 
—

 
—

 
—

 
—

Stock option exercises
—

 
—

 
—

 
—

 
—

 
—

Series A common stock dividends
(51
)
 
—

 
—

 
—

 
—

 
(51
)
Return of capital to parent
—

 
—

 
—

 
(5
)
 
5

 
—

(Distributions to) contributions from noncontrolling interests
—

 
—

 
—

 
(4
)
 
—

 
(4
)
Other, net
—

 
—

 
(16
)
 
(2
)
 
—

 
(18
)
Net cash provided by (used in) financing activities
(179
)
 
(185
)
 
(175
)
 
(266
)
 
535

 
(270
)
Exchange rate effects on cash and cash equivalents
—

 
—

 
—

 
5

 
—

 
5

Net increase (decrease) in cash and cash equivalents
—

 
—

 
5

 
(142
)
 
—

 
(137
)
Cash and cash equivalents as of beginning of period
—

 
—

 
51

 
587

 
—

 
638

Cash and cash equivalents as of end of period
—

 
—

 
56

 
445

 
—

 
501

CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS
 
Three Months Ended March 31, 2016
 
Parent
Guarantor
 
Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(In $ millions)
Net cash provided by (used in) operating activities
44

 
47

 
(1
)
 
309

 
(112
)
 
287

Investing Activities
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures on property, plant and equipment
—

 
—

 
(38
)
 
(32
)
 
—

 
(70
)
Acquisitions, net of cash acquired
—

 
—

 
—

 
—

 
—

 
—

Proceeds from sale of businesses and assets, net
—

 
—

 
—

 
—

 
—

 
—

Return of capital from subsidiary
—

 
136

 
734

 
—

 
(870
)
 
—

Contributions to subsidiary
—

 
—

 
—

 
—

 
—

 
—

Intercompany loan receipts (disbursements)
—

 
138

 
3

 
90

 
(231
)
 
—

Other, net
—

 
—

 
(3
)
 
(2
)
 
—

 
(5
)
Net cash provided by (used in) investing activities
—

 
274

 
696

 
56

 
(1,101
)
 
(75
)
Financing Activities
 
 
 
 
 
 
 
 
 
 
 
Net change in short-term borrowings with maturities of 3 months or less
—

 
(353
)
 
6

 
—

 
3

 
(344
)
Proceeds from short-term borrowings
—

 
—

 
—

 
8

 
—

 
8

Repayments of short-term borrowings
—

 
—

 
—

 
(63
)
 
—

 
(63
)
Proceeds from long-term debt
—

 
250

 
325

 
—

 
(405
)
 
170

Repayments of long-term debt
—

 
(172
)
 
(634
)
 
(4
)
 
633

 
(177
)
Purchases of treasury stock, including related fees
—

 
—

 
—

 
—

 
—

 
—

Dividends to parent
—

 
(44
)
 
(68
)
 
—

 
112

 
—

Contributions from parent
—

 
—

 
—

 
—

 
—

 
—

Stock option exercises
1

 
—

 
—

 
—

 
—

 
1

Series A common stock dividends
(44
)
 
—

 
—

 
—

 
—

 
(44
)
Return of capital to parent
—

 
—

 
—

 
(870
)
 
870

 
—

(Distributions to) contributions from noncontrolling interests
—

 
—

 
—

 
—

 
—

 
—

Other, net
—

 
(2
)
 
—

 
(22
)
 
—

 
(24
)
Net cash provided by (used in) financing activities
(43
)
 
(321
)
 
(371
)
 
(951
)
 
1,213

 
(473
)
Exchange rate effects on cash and cash equivalents
—

 
—

 
—

 
10

 
—

 
10

Net increase (decrease) in cash and cash equivalents
1

 
—

 
324

 
(576
)
 
—

 
(251
)
Cash and cash equivalents as of beginning of period
—

 
—

 
21

 
946

 
—

 
967

Cash and cash equivalents as of end of period
1

 
—

 
345

 
370

 
—

 
716