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Investments in Affiliates
12 Months Ended
Dec. 31, 2020
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 equity method of accounting or equity investments without readily determinable fair values are considered affiliates; any transactions or balances with such companies are considered affiliate transactions.
On October 9, 2020, the Company completed the sale of its 45% joint venture equity interest in Polyplastics Co., Ltd. ("Polyplastics"), to its joint venture partner Daicel Corporation ("Daicel"), for a purchase price of approximately $1.6 billion in cash. In connection with the transaction, the Company recorded a gain on the sale of its equity interest in Polyplastics of $1.4 billion to Gain (loss) on sale of investments in affiliates in the consolidated statements of operations and income tax expense, net, of approximately $254 million during the three months ended December 31, 2020. The gain on the sale of the Company's equity interest in Polyplastics was included in its Engineered Materials segment.
In addition to the sale of the Company's 45% equity interest in Polyplastics, the agreement provides for the amendment of certain supply agreements and the execution of certain intellectual property licenses between Celanese, certain of its affiliates and Polyplastics and Daicel, as applicable, as well as the termination of certain agreements and a mutual release of liabilities under such terminated agreements.
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,
2020201920202019202020192018202020192018
(In percentages)(In $ millions)
Engineered Materials
Ibn Sina25 25 172 164 37 68 96 (29)(69)(112)
InfraServ GmbH & Co. Hoechst KG(1)(2)
31 31 124 116 18 14 20 (18)(17)(25)
Fortron Industries LLC50 50 136 133 12 18 14 (9)(7)(3)
Korea Engineering Plastics Co., Ltd.50 50 153 146 19 27 29 (23)(28)(27)
Polyplastics Co., Ltd.— 45 — 192 34 44 64 (58)(39)(45)
Other Activities(2)
InfraServ GmbH & Co. Gendorf KG30 30 47 38 11 (7)(5)(5)
YNCORIS GmbH & Co. KG(3)
22 22 17 16 (3)(3)(4)
Total649 805 134 182 233 (147)(168)(221)
______________________________
(1)InfraServ GmbH & Co. Hoechst KG is owned primarily by an entity included in the Company's Engineered Materials segment. The Company's Acetyl Chain segment also holds an ownership percentage.
(2)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.
(3)Formerly known as InfraServ GmbH & Co. Knapsack KG.
Because financial information for Ibn Sina is not available to the Company on a timely basis, the Company's proportional share is reported on a one quarter lag. Accordingly, summarized financial information for Ibn Sina is as follows:
As of September 30,
20202019
(In $ millions)
Current assets244 253 
Noncurrent assets817 871 
Current liabilities201 148 
Noncurrent liabilities372 433 
Twelve Months Ended
September 30,
202020192018
(In $ millions)
Revenues625 726 913 
Gross profit187 299 396 
Net income118 227 322 
Equity Investments Without Readily Determinable Fair Values
Equity investments without readily determinable fair values 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,
2020201920202019202020192018
(In percentages)(In $ millions)
Acetate Tow
Kunming Cellulose Fibers Co. Ltd.30 30 14 14 11 11 12 
Nantong Cellulose Fibers Co. Ltd.31 31 121 121 91 79 87 
Zhuhai Cellulose Fibers Co. Ltd.30 30 30 30 24 22 13 
Other Activities
InfraServ GmbH & Co. Wiesbaden KG— 
Other— — — — 
Total171 170 126 113 117 
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 at cost less impairment, adjusted for observable price changes for an identical or similar investment of the same issuer. 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,
202020192018
(In $ millions)
Purchases249 291 305 
Sales and other credits42 102 117 
Interest expense— 
As of December 31,
20202019
(In $ millions)
Trade receivables— 
Non-trade receivables22 35 
Total due from affiliates22 36 
Short-term borrowings(1)
58 67 
Trade payables38 43 
Current Other liabilities10 
Total due to affiliates105 120 
______________________________
(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.