Consolidating Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2020

Consolidating Guarantor Financial Information [Abstract]

Schedule of Consolidating Statement of Operations

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS

	Three Months Ended June 30, 2020
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—		—		462		1,033		(302	)	1,193
Cost of sales	—		—		(408	)	(822	)	279		(951	)
Gross profit	—		—		54		211		(23	)	242
Selling, general and administrative expenses	—		—		(36	)	(78	)	—		(114	)
Amortization of intangible assets	—		—		(2	)	(4	)	—		(6	)
Research and development expenses	—		—		(8	)	(10	)	—		(18	)
Other (charges) gains, net	—		—		(5	)	(16	)	—		(21	)
Foreign exchange gain (loss), net	—		—		—		1		—		1
Gain (loss) on disposition of businesses and assets, net	—		—		(2	)	1		—		(1	)
Operating profit (loss)	—		—		1		105		(23	)	83
Equity in net earnings (loss) of affiliates	110		111		137		29		(356	)	31
Non-operating pension and other postretirement employee benefit (expense) income	—		—		25		2		—		27
Interest expense	(4	)	(10	)	(25	)	(3	)	15		(27	)
Interest income	—		9		5		2		(15	)	1
Dividend income - equity investments	—		—		—		32		—		32
Other income (expense), net	—		(1	)	(1	)	2		—		—
Earnings (loss) from continuing operations before tax	106		109		142		169		(379	)	147
Income tax (provision) benefit	1		1		(23	)	(17	)	3		(35	)
Earnings (loss) from continuing operations	107		110		119		152		(376	)	112
Earnings (loss) from operation of discontinued operations	—		—		(4	)	—		—		(4	)
Income tax (provision) benefit from discontinued operations	—		—		1		—		—		1
Earnings (loss) from discontinued operations	—		—		(3	)	—		—		(3	)
Net earnings (loss)	107		110		116		152		(376	)	109
Net (earnings) loss attributable to noncontrolling interests	—		—		—		(2	)	—		(2	)
Net earnings (loss) attributable to Celanese Corporation	107		110		116		150		(376	)	107

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS

	Three Months Ended June 30, 2019
	Parent Guarantor	Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—	—		586		1,298		(292	)	1,592
Cost of sales	—	—		(443	)	(1,020	)	294		(1,169	)
Gross profit	—	—		143		278		2		423
Selling, general and administrative expenses	—	—		(39	)	(79	)	—		(118	)
Amortization of intangible assets	—	—		(2	)	(4	)	—		(6	)
Research and development expenses	—	—		(7	)	(10	)	—		(17	)
Other (charges) gains, net	—	—		(5	)	(93	)	—		(98	)
Foreign exchange gain (loss), net	—	—		—		1		—		1
Gain (loss) on disposition of businesses and assets, net	—	—		(2	)	3		—		1
Operating profit (loss)	—	—		88		96		2		186
Equity in net earnings (loss) of affiliates	209	210		122		34		(536	)	39
Non-operating pension and other postretirement employee benefit (expense) income	—	—		16		1		—		17
Interest expense	—	(9	)	(35	)	(13	)	28		(29	)
Refinancing expense	—	(4	)	—		—		—		(4	)
Interest income	—	18		11		1		(28	)	2
Dividend income - equity investments	—	—		—		30		—		30
Other income (expense), net	—	(4	)	—		2		—		(2	)
Earnings (loss) from continuing operations before tax	209	211		202		151		(534	)	239
Income tax (provision) benefit	—	(2	)	(23	)	(3	)	—		(28	)
Earnings (loss) from continuing operations	209	209		179		148		(534	)	211
Earnings (loss) from operation of discontinued operations	—	—		(2	)	—		—		(2	)
Income tax (provision) benefit from discontinued operations	—	—		1		—		—		1
Earnings (loss) from discontinued operations	—	—		(1	)	—		—		(1	)
Net earnings (loss)	209	209		178		148		(534	)	210
Net (earnings) loss attributable to noncontrolling interests	—	—		—		(1	)	—		(1	)
Net earnings (loss) attributable to Celanese Corporation	209	209		178		147		(534	)	209

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS

	Six Months Ended June 30, 2020
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—		—		1,022		2,236		(605	)	2,653
Cost of sales	—		—		(868	)	(1,768	)	573		(2,063	)
Gross profit	—		—		154		468		(32	)	590
Selling, general and administrative expenses	—		—		(90	)	(149	)	—		(239	)
Amortization of intangible assets	—		—		(4	)	(7	)	—		(11	)
Research and development expenses	—		—		(15	)	(20	)	—		(35	)
Other (charges) gains, net	—		—		(13	)	(14	)	—		(27	)
Foreign exchange gain (loss), net	—		—		(1	)	1		—		—
Gain (loss) on disposition of businesses and assets, net	—		—		(4	)	3		—		(1	)
Operating profit (loss)	—		—		27		282		(32	)	277
Equity in net earnings (loss) of affiliates	336		333		325		80		(986	)	88
Non-operating pension and other postretirement employee benefit (expense) income	—		—		50		5		—		55
Interest expense	(12	)	(19	)	(55	)	(8	)	39		(55	)
Interest income	—		22		15		6		(40	)	3
Dividend income - equity investments	—		—		—		68		1		69
Other income (expense), net	—		7		—		(5	)	—		2
Earnings (loss) from continuing operations before tax	324		343		362		428		(1,018	)	439
Income tax (provision) benefit	1		(7	)	(18	)	(80	)	4		(100	)
Earnings (loss) from continuing operations	325		336		344		348		(1,014	)	339
Earnings (loss) from operation of discontinued operations	—		—		(4	)	(7	)	—		(11	)
Income tax (provision) benefit from discontinued operations	—		—		1		—		—		1
Earnings (loss) from discontinued operations	—		—		(3	)	(7	)	—		(10	)
Net earnings (loss)	325		336		341		341		(1,014	)	329
Net (earnings) loss attributable to noncontrolling interests	—		—		—		(4	)	—		(4	)
Net earnings (loss) attributable to Celanese Corporation	325		336		341		337		(1,014	)	325

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS

	Six Months Ended June 30, 2019
	Parent Guarantor	Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—	—		1,210		2,671		(602	)	3,279
Cost of sales	—	—		(901	)	(2,097	)	595		(2,403	)
Gross profit	—	—		309		574		(7	)	876
Selling, general and administrative expenses	—	—		(79	)	(159	)	—		(238	)
Amortization of intangible assets	—	—		(4	)	(8	)	—		(12	)
Research and development expenses	—	—		(13	)	(20	)	—		(33	)
Other (charges) gains, net	—	—		(5	)	(89	)	—		(94	)
Foreign exchange gain (loss), net	—	—		—		6		—		6
Gain (loss) on disposition of businesses and assets, net	—	—		(4	)	5		—		1
Operating profit (loss)	—	—		204		309		(7	)	506
Equity in net earnings (loss) of affiliates	546	547		339		77		(1,420	)	89
Non-operating pension and other postretirement employee benefit (expense) income	—	—		31		3		—		34
Interest expense	—	(19	)	(66	)	(20	)	45		(60	)
Refinancing expense	—	(4	)	—		—		—		(4	)
Interest income	—	31		13		4		(45	)	3
Dividend income - equity investments	—	—		—		62		—		62
Other income (expense), net	—	(3	)	—		(3	)	—		(6	)
Earnings (loss) from continuing operations before tax	546	552		521		432		(1,427	)	624
Income tax (provision) benefit	—	(6	)	(30	)	(39	)	1		(74	)
Earnings (loss) from continuing operations	546	546		491		393		(1,426	)	550
Earnings (loss) from operation of discontinued operations	—	—		(3	)	—		—		(3	)
Income tax (provision) benefit from discontinued operations	—	—		1		—		—		1
Earnings (loss) from discontinued operations	—	—		(2	)	—		—		(2	)
Net earnings (loss)	546	546		489		393		(1,426	)	548
Net (earnings) loss attributable to noncontrolling interests	—	—		—		(2	)	—		(2	)
Net earnings (loss) attributable to Celanese Corporation	546	546		489		391		(1,426	)	546

Schedule of Consolidating Statements of Comprehensive Income (Loss)

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended June 30, 2020
	Parent Guarantor		Issuer		Subsidiary Guarantors	Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net earnings (loss)	107		110		116	152		(376	)	109
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss)	(6	)	(6	)	15	18		(27	)	(6	)
Gain (loss) on cash flow hedges	1		1		3	2		(6	)	1
Total other comprehensive income (loss), net of tax	(5	)	(5	)	18	20		(33	)	(5	)
Total comprehensive income (loss), net of tax	102		105		134	172		(409	)	104
Comprehensive (income) loss attributable to noncontrolling interests	—		—		—	(2	)	—		(2	)
Comprehensive income (loss) attributable to Celanese Corporation	102		105		134	170		(409	)	102

	Three Months Ended June 30, 2019
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net earnings (loss)	209		209		178		148		(534	)	210
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss)	(11	)	(11	)	2		4		5		(11	)
Gain (loss) on cash flow hedges	(13	)	(13	)	(3	)	(3	)	19		(13	)
Total other comprehensive income (loss), net of tax	(24	)	(24	)	(1	)	1		24		(24	)
Total comprehensive income (loss), net of tax	185		185		177		149		(510	)	186
Comprehensive (income) loss attributable to noncontrolling interests	—		—		—		(1	)	—		(1	)
Comprehensive income (loss) attributable to Celanese Corporation	185		185		177		148		(510	)	185

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Six Months Ended June 30, 2020
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net earnings (loss)	325		336		341		341		(1,014	)	329
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss)	(8	)	(8	)	(29	)	(36	)	73		(8	)
Gain (loss) on cash flow hedges	(38	)	(38	)	2		2		34		(38	)
Total other comprehensive income (loss), net of tax	(46	)	(46	)	(27	)	(34	)	107		(46	)
Total comprehensive income (loss), net of tax	279		290		314		307		(907	)	283
Comprehensive (income) loss attributable to noncontrolling interests	—		—		—		(4	)	—		(4	)
Comprehensive income (loss) attributable to Celanese Corporation	279		290		314		303		(907	)	279

	Six Months Ended June 30, 2019
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net earnings (loss)	546		546		489		393		(1,426	)	548
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss)	(4	)	(4	)	(16	)	(20	)	40		(4	)
Gain (loss) on cash flow hedges	(16	)	(16	)	3		5		8		(16	)
Total other comprehensive income (loss), net of tax	(20	)	(20	)	(13	)	(15	)	48		(20	)
Total comprehensive income (loss), net of tax	526		526		476		378		(1,378	)	528
Comprehensive (income) loss attributable to noncontrolling interests	—		—		—		(2	)	—		(2	)
Comprehensive income (loss) attributable to Celanese Corporation	526		526		476		376		(1,378	)	526

Schedule of Consolidating Balance Sheet

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATING BALANCE SHEET

	As of June 30, 2020
	Parent Guarantor	Issuer	Subsidiary Guarantors	Non- Guarantors	Eliminations		Consolidated
	(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents	—	—	28	511	—		539
Trade receivables - third party and affiliates	—	—	146	732	(149	)	729
Non-trade receivables, net	58	2,999	2,103	1,126	(5,974	)	312
Inventories, net	—	—	381	729	(79	)	1,031
Marketable securities	—	—	21	15	—		36
Other assets	—	25	27	38	(28	)	62
Total current assets	58	3,024	2,706	3,151	(6,230	)	2,709
Investments in affiliates	4,350	5,515	4,421	824	(14,153	)	957
Property, plant and equipment, net	—	—	1,501	2,224	—		3,725
Operating lease right-of-use assets	—	—	49	152	—		201
Deferred income taxes	—	—	—	102	(2	)	100
Other assets	—	22	228	159	(10	)	399
Goodwill	—	—	398	700	—		1,098
Intangible assets, net	—	—	121	196	—		317
Total assets	4,408	8,561	9,424	7,508	(20,395	)	9,506
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates	1,921	1,192	3,077	231	(5,376	)	1,045
Trade payables - third party and affiliates	—	—	270	478	(149	)	599
Other liabilities	—	136	169	392	(125	)	572
Income taxes payable	—	—	475	76	(505	)	46
Total current liabilities	1,921	1,328	3,991	1,177	(6,155	)	2,262
Noncurrent Liabilities
Long-term debt	—	2,881	26	82	—		2,989
Deferred income taxes	—	—	97	161	(2	)	256
Uncertain tax positions	—	2	—	174	13		189
Benefit obligations	—	—	248	331	—		579
Operating lease liabilities	—	—	40	143	—		183
Other liabilities	—	—	93	119	(33	)	179
Total noncurrent liabilities	—	2,883	504	1,010	(22	)	4,375
Total Celanese Corporation stockholders' equity	2,487	4,350	4,929	4,939	(14,218	)	2,487
Noncontrolling interests	—	—	—	382	—		382
Total equity	2,487	4,350	4,929	5,321	(14,218	)	2,869
Total liabilities and equity	4,408	8,561	9,424	7,508	(20,395	)	9,506

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATING BALANCE SHEET

	As of December 31, 2019
	Parent Guarantor	Issuer	Subsidiary Guarantors	Non- Guarantors	Eliminations		Consolidated
	(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents	—	—	16	447	—		463
Trade receivables - third party and affiliates	—	—	122	851	(123	)	850
Non-trade receivables, net	56	1,188	1,925	743	(3,581	)	331
Inventories, net	—	—	360	725	(47	)	1,038
Marketable securities	—	—	24	16	—		40
Other assets	—	36	11	38	(42	)	43
Total current assets	56	1,224	2,458	2,820	(3,793	)	2,765
Investments in affiliates	4,064	5,217	4,206	841	(13,353	)	975
Property, plant and equipment, net	—	—	1,461	2,252	—		3,713
Operating lease right-of-use assets	—	—	50	153	—		203
Deferred income taxes	—	—	—	101	(5	)	96
Other assets	—	1,661	195	445	(1,963	)	338
Goodwill	—	—	399	675	—		1,074
Intangible assets, net	—	—	125	187	—		312
Total assets	4,120	8,102	8,894	7,474	(19,114	)	9,476
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates	1,596	374	1,089	385	(2,948	)	496
Trade payables - third party and affiliates	17	—	333	553	(123	)	780
Other liabilities	—	49	188	397	(173	)	461
Income taxes payable	—	—	439	80	(502	)	17
Total current liabilities	1,613	423	2,049	1,415	(3,746	)	1,754
Noncurrent Liabilities
Long-term debt	—	3,565	1,677	101	(1,934	)	3,409
Deferred income taxes	—	3	101	158	(5	)	257
Uncertain tax positions	—	—	—	169	(4	)	165
Benefit obligations	—	—	257	332	—		589
Operating lease liabilities	—	—	40	140	1		181
Other liabilities	—	47	93	118	(35	)	223
Total noncurrent liabilities	—	3,615	2,168	1,018	(1,977	)	4,824
Total Celanese Corporation stockholders' equity	2,507	4,064	4,677	4,650	(13,391	)	2,507
Noncontrolling interests	—	—	—	391	—		391
Total equity	2,507	4,064	4,677	5,041	(13,391	)	2,898
Total liabilities and equity	4,120	8,102	8,894	7,474	(19,114	)	9,476

Schedule of Consolidating Statement of Cash Flows

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS

	Six Months Ended June 30, 2020
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net cash provided by (used in) operating activities	315		(339	)	256		406		—		638
Investing Activities
Capital expenditures on property, plant and equipment	—		—		(127	)	(80	)	—		(207	)
Acquisitions, net of cash acquired	—		—		(5	)	(83	)	—		(88	)
Proceeds from sale of businesses and assets, net	—		—		—		3		—		3
Return of capital from subsidiary	—		—		23		—		(23	)	—
Intercompany loan receipts (disbursements)	—		—		(88	)	(67	)	155		—
Other, net	—		—		(8	)	(9	)	—		(17	)
Net cash provided by (used in) investing activities	—		—		(205	)	(236	)	132		(309	)
Financing Activities
Net change in short-term borrowings with maturities of 3 months or less	—		(28	)	(17	)	—		(91	)	(136	)
Proceeds from short-term borrowings	—		300		—		6		—		306
Repayments of short-term borrowings	—		—		—		(50	)	—		(50	)
Proceeds from long-term debt	—		339		—		—		(339	)	—
Repayments of long-term debt	—		(272	)	(2	)	(17	)	275		(16	)
Purchases of treasury stock, including related fees	(167	)	—		—		—		—		(167	)
Common stock dividends	(148	)	—		—		—		—		(148	)
Return of capital to parent	—		—		—		(23	)	23		—
Distributions to noncontrolling interests	—		—		—		(13	)	—		(13	)
Other, net	—		—		(20	)	(4	)	—		(24	)
Net cash provided by (used in) financing activities	(315	)	339		(39	)	(101	)	(132	)	(248	)
Exchange rate effects on cash and cash equivalents	—		—		—		(5	)	—		(5	)
Net increase (decrease) in cash and cash equivalents	—		—		12		64		—		76
Cash and cash equivalents as of beginning of period	—		—		16		447		—		463
Cash and cash equivalents as of end of period	—		—		28		511		—		539

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS

	Six Months Ended June 30, 2019
	Parent Guarantor		Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net cash provided by (used in) operating activities	636		(31	)	1,052		635		(1,561	)	731
Investing Activities
Capital expenditures on property, plant and equipment	—		—		(83	)	(61	)	—		(144	)
Acquisitions, net of cash acquired	—		—		(31	)	(60	)	—		(91	)
Return of capital from subsidiary	—		—		7		—		(7	)	—
Intercompany loan receipts (disbursements)	—		—		(653	)	—		653		—
Other, net	—		—		2		(10	)	—		(8	)
Net cash provided by (used in) investing activities	—		—		(758	)	(131	)	646		(243	)
Financing Activities
Net change in short-term borrowings with maturities of 3 months or less	—		149		3		(4	)	(43	)	105
Proceeds from short-term borrowings	—		—		—		610		(610	)	—
Repayments of short-term borrowings	—		—		—		(12	)	—		(12	)
Proceeds from long-term debt	—		499		—		—		—		499
Repayments of long-term debt	—		(335	)	(1	)	(12	)	—		(348	)
Purchases of treasury stock, including related fees	(488	)	—		—		—		—		(488	)
Dividends to parent	—		(272	)	(251	)	(1,038	)	1,561		—
Common stock dividends	(148	)	—		—		—		—		(148	)
Return of capital to parent	—		—		—		(7	)	7		—
Distributions to noncontrolling interests	—		—		—		(7	)	—		(7	)
Other, net	—		(10	)	(24	)	(4	)	—		(38	)
Net cash provided by (used in) financing activities	(636	)	31		(273	)	(474	)	915		(437	)
Exchange rate effects on cash and cash equivalents	—		—		—		1		—		1
Net increase (decrease) in cash and cash equivalents	—		—		21		31		—		52
Cash and cash equivalents as of beginning of period	—		—		30		409		—		439
Cash and cash equivalents as of end of period	—		—		51		440		—		491