Consolidating Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2019

Consolidating Guarantor Financial Information [Abstract]

Schedule of Consolidating Statement of Operations

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS

	Three Months Ended September 30, 2019
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—		—		570		1,292		(276	)	1,586
Cost of sales	—		—		(444	)	(1,011	)	283		(1,172	)
Gross profit	—		—		126		281		7		414
Selling, general and administrative expenses	—		—		(46	)	(74	)	—		(120	)
Amortization of intangible assets	—		—		(2	)	(4	)	—		(6	)
Research and development expenses	—		—		(7	)	(10	)	—		(17	)
Other (charges) gains, net	—		—		(1	)	(6	)	—		(7	)
Foreign exchange gain (loss), net	—		—		—		(1	)	—		(1	)
Gain (loss) on disposition of businesses and assets, net	—		—		(3	)	—		—		(3	)
Operating profit (loss)	—		—		67		186		7		260
Equity in net earnings (loss) of affiliates	277		267		183		43		(725	)	45
Non-operating pension and other postretirement employee benefit (expense) income	—		—		15		2		—		17
Interest expense	(20	)	(5	)	(37	)	(9	)	44		(27	)
Interest income	—		18		23		4		(44	)	1
Dividend income - equity investments	—		—		—		27		—		27
Other income (expense), net	—		—		1		(1	)	—		—
Earnings (loss) from continuing operations before tax	257		280		252		252		(718	)	323
Income tax (provision) benefit	6		(3	)	2		(57	)	(1	)	(53	)
Earnings (loss) from continuing operations	263		277		254		195		(719	)	270
Earnings (loss) from operation of discontinued operations	—		—		(6	)	—		—		(6	)
Income tax (provision) benefit from discontinued operations	—		—		1		—		—		1
Earnings (loss) from discontinued operations	—		—		(5	)	—		—		(5	)
Net earnings (loss)	263		277		249		195		(719	)	265
Net (earnings) loss attributable to noncontrolling interests	—		—		—		(2	)	—		(2	)
Net earnings (loss) attributable to Celanese Corporation	263		277		249		193		(719	)	263

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS

	Three Months Ended September 30, 2018
	Parent Guarantor	Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—	—		565		1,483		(277	)	1,771
Cost of sales	—	—		(432	)	(1,105	)	282		(1,255	)
Gross profit	—	—		133		378		5		516
Selling, general and administrative expenses	—	—		(46	)	(83	)	—		(129	)
Amortization of intangible assets	—	—		(1	)	(4	)	—		(5	)
Research and development expenses	—	—		(7	)	(11	)	—		(18	)
Other (charges) gains, net	—	—		—		12		—		12
Foreign exchange gain (loss), net	—	(3	)	—		3		—		—
Gain (loss) on disposition of businesses and assets, net	—	—		(3	)	1		—		(2	)
Operating profit (loss)	—	(3	)	76		296		5		374
Equity in net earnings (loss) of affiliates	401	411		286		64		(1,096	)	66
Non-operating pension and other postretirement employee benefit (expense) income	—	—		23		3		(1	)	25
Interest expense	—	(5	)	(33	)	(8	)	16		(30	)
Interest income	—	13		1		3		(15	)	2
Dividend income - equity investments	—	—		—		25		1		26
Other income (expense), net	—	—		1		(1	)	(1	)	(1	)
Earnings (loss) from continuing operations before tax	401	416		354		382		(1,091	)	462
Income tax (provision) benefit	—	(15	)	(10	)	(28	)	(1	)	(54	)
Earnings (loss) from continuing operations	401	401		344		354		(1,092	)	408
Earnings (loss) from operation of discontinued operations	—	—		(1	)	(6	)	—		(7	)
Income tax (provision) benefit from discontinued operations	—	—		—		1		—		1
Earnings (loss) from discontinued operations	—	—		(1	)	(5	)	—		(6	)
Net earnings (loss)	401	401		343		349		(1,092	)	402
Net (earnings) loss attributable to noncontrolling interests	—	—		—		(1	)	—		(1	)
Net earnings (loss) attributable to Celanese Corporation	401	401		343		348		(1,092	)	401

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS

	Nine Months Ended September 30, 2019
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—		—		1,780		3,963		(878	)	4,865
Cost of sales	—		—		(1,345	)	(3,108	)	878		(3,575	)
Gross profit	—		—		435		855		—		1,290
Selling, general and administrative expenses	—		—		(125	)	(233	)	—		(358	)
Amortization of intangible assets	—		—		(6	)	(12	)	—		(18	)
Research and development expenses	—		—		(20	)	(30	)	—		(50	)
Other (charges) gains, net	—		—		(6	)	(95	)	—		(101	)
Foreign exchange gain (loss), net	—		—		—		5		—		5
Gain (loss) on disposition of businesses and assets, net	—		—		(7	)	5		—		(2	)
Operating profit (loss)	—		—		271		495		—		766
Equity in net earnings (loss) of affiliates	823		814		522		120		(2,145	)	134
Non-operating pension and other postretirement employee benefit (expense) income	—		—		46		5		—		51
Interest expense	(20	)	(24	)	(103	)	(29	)	89		(87	)
Refinancing expense	—		(4	)	—		—		—		(4	)
Interest income	—		49		36		8		(89	)	4
Dividend income - equity investments	—		—		—		89		—		89
Other income (expense), net	—		(3	)	1		(4	)	—		(6	)
Earnings (loss) from continuing operations before tax	803		832		773		684		(2,145	)	947
Income tax (provision) benefit	6		(9	)	(28	)	(96	)	—		(127	)
Earnings (loss) from continuing operations	809		823		745		588		(2,145	)	820
Earnings (loss) from operation of discontinued operations	—		—		(9	)	—		—		(9	)
Income tax (provision) benefit from discontinued operations	—		—		2		—		—		2
Earnings (loss) from discontinued operations	—		—		(7	)	—		—		(7	)
Net earnings (loss)	809		823		738		588		(2,145	)	813
Net (earnings) loss attributable to noncontrolling interests	—		—		—		(4	)	—		(4	)
Net earnings (loss) attributable to Celanese Corporation	809		823		738		584		(2,145	)	809

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS

	Nine Months Ended September 30, 2018
	Parent Guarantor	Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—	—		1,733		4,621		(888	)	5,466
Cost of sales	—	—		(1,337	)	(3,470	)	893		(3,914	)
Gross profit	—	—		396		1,151		5		1,552
Selling, general and administrative expenses	—	—		(156	)	(256	)	—		(412	)
Amortization of intangible assets	—	—		(3	)	(15	)	—		(18	)
Research and development expenses	—	—		(22	)	(32	)	—		(54	)
Other (charges) gains, net	—	—		—		9		—		9
Foreign exchange gain (loss), net	—	(3	)	—		5		—		2
Gain (loss) on disposition of businesses and assets, net	—	—		(8	)	4		—		(4	)
Operating profit (loss)	—	(3	)	207		866		5		1,075
Equity in net earnings (loss) of affiliates	1,108	1,112		872		170		(3,082	)	180
Non-operating pension and other postretirement employee benefit (expense) income	—	—		70		8		(1	)	77
Interest expense	—	(15	)	(93	)	(25	)	38		(95	)
Interest income	—	31		5		7		(39	)	4
Dividend income - equity investments	—	—		—		89		3		92
Other income (expense), net	—	—		1		3		(1	)	3
Earnings (loss) from continuing operations before tax	1,108	1,125		1,062		1,118		(3,077	)	1,336
Income tax (provision) benefit	—	(17	)	(115	)	(83	)	(1	)	(216	)
Earnings (loss) from continuing operations	1,108	1,108		947		1,035		(3,078	)	1,120
Earnings (loss) from operation of discontinued operations	—	—		(2	)	(7	)	—		(9	)
Income tax (provision) benefit from discontinued operations	—	—		—		1		—		1
Earnings (loss) from discontinued operations	—	—		(2	)	(6	)	—		(8	)
Net earnings (loss)	1,108	1,108		945		1,029		(3,078	)	1,112
Net (earnings) loss attributable to noncontrolling interests	—	—		—		(4	)	—		(4	)
Net earnings (loss) attributable to Celanese Corporation	1,108	1,108		945		1,025		(3,078	)	1,108

Schedule of Consolidating Statements of Comprehensive Income (Loss)

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended September 30, 2019
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net earnings (loss)	263		277		249		195		(719	)	265
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss)	(7	)	(7	)	(52	)	(67	)	126		(7	)
Gain (loss) on cash flow hedges	(32	)	(32	)	(12	)	(12	)	56		(32	)
Total other comprehensive income (loss), net of tax	(39	)	(39	)	(64	)	(79	)	182		(39	)
Total comprehensive income (loss), net of tax	224		238		185		116		(537	)	226
Comprehensive (income) loss attributable to noncontrolling interests	—		—		—		(2	)	—		(2	)
Comprehensive income (loss) attributable to Celanese Corporation	224		238		185		114		(537	)	224

	Three Months Ended September 30, 2018
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net earnings (loss)	401		401		343		349		(1,092	)	402
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on marketable securities	—		—		1		—		(1	)	—
Foreign currency translation gain (loss)	(35	)	(35	)	(31	)	(37	)	103		(35	)
Gain (loss) on cash flow hedges	4		4		2		2		(8	)	4
Total other comprehensive income (loss), net of tax	(31	)	(31	)	(28	)	(35	)	94		(31	)
Total comprehensive income (loss), net of tax	370		370		315		314		(998	)	371
Comprehensive (income) loss attributable to noncontrolling interests	—		—		—		(1	)	—		(1	)
Comprehensive income (loss) attributable to Celanese Corporation	370		370		315		313		(998	)	370

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Nine Months Ended September 30, 2019
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net earnings (loss)	809		823		738		588		(2,145	)	813
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss)	(11	)	(11	)	(68	)	(87	)	166		(11	)
Gain (loss) on cash flow hedges	(48	)	(48	)	(9	)	(7	)	64		(48	)
Total other comprehensive income (loss), net of tax	(59	)	(59	)	(77	)	(94	)	230		(59	)
Total comprehensive income (loss), net of tax	750		764		661		494		(1,915	)	754
Comprehensive (income) loss attributable to noncontrolling interests	—		—		—		(4	)	—		(4	)
Comprehensive income (loss) attributable to Celanese Corporation	750		764		661		490		(1,915	)	750

	Nine Months Ended September 30, 2018
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net earnings (loss)	1,108		1,108		945		1,029		(3,078	)	1,112
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on marketable securities	—		—		6		13		(19	)	—
Foreign currency translation gain (loss)	(52	)	(52	)	(77	)	(95	)	224		(52	)
Gain (loss) on cash flow hedges	9		9		6		7		(22	)	9
Pension and postretirement benefits gain (loss)	1		1		1		1		(3	)	1
Total other comprehensive income (loss), net of tax	(42	)	(42	)	(64	)	(74	)	180		(42	)
Total comprehensive income (loss), net of tax	1,066		1,066		881		955		(2,898	)	1,070
Comprehensive (income) loss attributable to noncontrolling interests	—		—		—		(4	)	—		(4	)
Comprehensive income (loss) attributable to Celanese Corporation	1,066		1,066		881		951		(2,898	)	1,066

Schedule of Consolidating Balance Sheet

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATING BALANCE SHEET

	As of September 30, 2019
	Parent Guarantor	Issuer	Subsidiary Guarantors	Non- Guarantors	Eliminations		Consolidated
	(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents	—	—	87	410	—		497
Trade receivables - third party and affiliates	—	—	102	958	(113	)	947
Non-trade receivables, net	46	1,082	1,771	705	(3,269	)	335
Inventories, net	—	—	337	706	(49	)	994
Marketable securities, at fair value	—	—	26	—	—		26
Other assets	—	31	17	73	(77	)	44
Total current assets	46	1,113	2,340	2,852	(3,508	)	2,843
Investments in affiliates	4,006	5,135	4,241	839	(13,251	)	970
Property, plant and equipment, net	—	—	1,373	2,212	—		3,585
Operating lease right-of-use assets	—	—	54	152	—		206
Deferred income taxes	—	—	—	100	(2	)	98
Other assets	1	1,674	194	426	(1,951	)	344
Goodwill	—	—	399	655	—		1,054
Intangible assets, net	—	—	127	187	—		314
Total assets	4,053	7,922	8,728	7,423	(18,712	)	9,414
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates	1,280	251	914	555	(2,632	)	368
Trade payables - third party and affiliates	25	1	295	556	(113	)	764
Other liabilities	—	79	190	297	(208	)	358
Income taxes payable	1	—	495	53	(506	)	43
Total current liabilities	1,306	331	1,894	1,461	(3,459	)	1,533
Noncurrent Liabilities
Long-term debt	—	3,502	1,678	104	(1,925	)	3,359
Deferred income taxes	—	26	84	161	(2	)	269
Uncertain tax positions	—	2	6	161	—		169
Benefit obligations	—	—	237	286	—		523
Operating lease liabilities	—	—	43	139	—		182
Other liabilities	—	55	94	126	(35	)	240
Total noncurrent liabilities	—	3,585	2,142	977	(1,962	)	4,742
Total Celanese Corporation stockholders' equity	2,747	4,006	4,692	4,593	(13,291	)	2,747
Noncontrolling interests	—	—	—	392	—		392
Total equity	2,747	4,006	4,692	4,985	(13,291	)	3,139
Total liabilities and equity	4,053	7,922	8,728	7,423	(18,712	)	9,414

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATING BALANCE SHEET

	As of December 31, 2018
	Parent Guarantor	Issuer	Subsidiary Guarantors	Non- Guarantors	Eliminations		Consolidated
	(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents	—	—	30	409	—		439
Trade receivables - third party and affiliates	—	—	96	1,040	(119	)	1,017
Non-trade receivables, net	40	551	797	697	(1,784	)	301
Inventories, net	—	—	329	765	(48	)	1,046
Marketable securities, at fair value	—	—	31	—	—		31
Other assets	—	24	10	37	(31	)	40
Total current assets	40	575	1,293	2,948	(1,982	)	2,874
Investments in affiliates	3,503	4,820	4,678	855	(12,877	)	979
Property, plant and equipment, net	—	—	1,289	2,430	—		3,719
Deferred income taxes	—	—	—	86	(2	)	84
Other assets	—	1,658	142	461	(1,971	)	290
Goodwill	—	—	399	658	—		1,057
Intangible assets, net	—	—	132	178	—		310
Total assets	3,543	7,053	7,933	7,616	(16,832	)	9,313
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates	544	333	465	258	(1,039	)	561
Trade payables - third party and affiliates	13	1	342	583	(120	)	819
Other liabilities	1	87	267	258	(270	)	343
Income taxes payable	—	—	475	88	(507	)	56
Total current liabilities	558	421	1,549	1,187	(1,936	)	1,779
Noncurrent Liabilities
Long-term debt	—	3,104	1,679	127	(1,940	)	2,970
Deferred income taxes	—	15	85	157	(2	)	255
Uncertain tax positions	—	—	6	152	—		158
Benefit obligations	—	—	250	314	—		564
Other liabilities	1	10	99	138	(40	)	208
Total noncurrent liabilities	1	3,129	2,119	888	(1,982	)	4,155
Total Celanese Corporation stockholders' equity	2,984	3,503	4,265	5,146	(12,914	)	2,984
Noncontrolling interests	—	—	—	395	—		395
Total equity	2,984	3,503	4,265	5,541	(12,914	)	3,379
Total liabilities and equity	3,543	7,053	7,933	7,616	(16,832	)	9,313

Schedule of Consolidating Statement of Cash Flows

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS

	Nine Months Ended September 30, 2019
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net cash provided by (used in) operating activities	988		(47	)	1,132		616		(1,561	)	1,128
Investing Activities
Capital expenditures on property, plant and equipment	—		—		(137	)	(89	)	—		(226	)
Acquisitions, net of cash acquired	—		—		(31	)	(60	)	—		(91	)
Proceeds from sale of businesses and assets, net	—		—		6		—		(5	)	1
Return of capital from subsidiary	—		—		7		—		(7	)	—
Intercompany loan receipts (disbursements)	—		—		(649	)	—		649		—
Other, net	—		—		1		(15	)	5		(9	)
Net cash provided by (used in) investing activities	—		—		(803	)	(164	)	642		(325	)
Financing Activities
Net change in short-term borrowings with maturities of 3 months or less	—		165		4		(3	)	(39	)	127
Proceeds from short-term borrowings	—		—		—		720		(610	)	110
Repayments of short-term borrowings	—		—		—		(85	)	—		(85	)
Proceeds from long-term debt	—		499		—		—		—		499
Repayments of long-term debt	—		(335	)	(1	)	(18	)	—		(354	)
Purchases of treasury stock, including related fees	(763	)	—		—		—		—		(763	)
Dividends to parent	—		(272	)	(251	)	(1,038	)	1,561		—
Common stock dividends	(225	)	—		—		—		—		(225	)
Return of capital to parent	—		—		—		(7	)	7		—
(Distributions to) contributions from noncontrolling interests	—		—		—		(7	)	—		(7	)
Other, net	—		(10	)	(24	)	(4	)	—		(38	)
Net cash provided by (used in) financing activities	(988	)	47		(272	)	(442	)	919		(736	)
Exchange rate effects on cash and cash equivalents	—		—		—		(9	)	—		(9	)
Net increase (decrease) in cash and cash equivalents	—		—		57		1		—		58
Cash and cash equivalents as of beginning of period	—		—		30		409		—		439
Cash and cash equivalents as of end of period	—		—		87		410		—		497

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS

	Nine Months Ended September 30, 2018
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net cash provided by (used in) operating activities	459		567		224		1,015		(1,070	)	1,195
Investing Activities
Capital expenditures on property, plant and equipment	—		—		(163	)	(81	)	—		(244	)
Acquisitions, net of cash acquired	—		—		(144	)	—		—		(144	)
Proceeds from sale of businesses and assets, net	—		—		—		13		—		13
Return of capital from subsidiary	—		—		225		—		(225	)	—
Contributions to subsidiary	—		—		(16	)	—		16		—
Intercompany loan receipts (disbursements)	—		(327	)	(12	)	(285	)	624		—
Other, net	—		—		(7	)	(27	)	—		(34	)
Net cash provided by (used in) investing activities	—		(327	)	(117	)	(380	)	415		(409	)
Financing Activities
Net change in short-term borrowings with maturities of 3 months or less	—		(33	)	11		(52	)	(12	)	(86	)
Proceeds from short-term borrowings	—		—		—		44		—		44
Repayments of short-term borrowings	—		—		—		(62	)	—		(62	)
Proceeds from long-term debt	—		285		327		—		(612	)	—
Repayments of long-term debt	—		(19	)	(13	)	(24	)	—		(56	)
Purchases of treasury stock, including related fees	(250	)	—		—		—		—		(250	)
Dividends to parent	—		(459	)	(611	)	—		1,070		—
Contributions from parent	—		—		—		16		(16	)	—
Common stock dividends	(209	)	—		—		—		—		(209	)
Return of capital to parent	—		—		—		(225	)	225		—
(Distributions to) contributions from noncontrolling interests	—		—		—		(14	)	—		(14	)
Other, net	—		—		(5	)	(1	)	—		(6	)
Net cash provided by (used in) financing activities	(459	)	(226	)	(291	)	(318	)	655		(639	)
Exchange rate effects on cash and cash equivalents	—		—		—		(20	)	—		(20	)
Net increase (decrease) in cash and cash equivalents	—		14		(184	)	297		—		127
Cash and cash equivalents as of beginning of period	—		—		230		346		—		576
Cash and cash equivalents as of end of period	—		14		46		643		—		703