Celanese Corporation Reports Second Quarter 2019 Earnings; Reaffirms 2019 Full Year

Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, reported second quarter GAAP diluted earnings per share of $1.67 and adjusted earnings per share of $2.38 on net sales of $1.6 billion. Celanese delivered solid performance, amid a backdrop of weak demand and accelerated destocking, by exercising its differentiated business models in the Acetyl Chain and Engineered Materials, and demonstrating a stable Acetate Tow earnings profile. In the second quarter, the Company generated operating cash flow of $424 million and free cash flow of $356 million, and returned $378 million to shareholders through $300 million in share repurchases and $78 million in dividends. With an expectation for improved demand fundamentals as the year progresses, the Company reaffirmed its full year 2019 guidance for adjusted EPS.

Second Quarter 2019 Financial Highlights:

	Three Months Ended
	June 30, 2019				March 31, 2019				June 30, 2018
	(unaudited)
	(In $ millions)
Operating Profit (Loss)
Engineered Materials	103				144				114
Acetate Tow	(44		)		40				39
Acetyl Chain	188				202				273
Other Activities	(61		)		(66		)		(68		)
Total	186				320				358
	Three Months Ended
	June 30, 2019				March 31, 2019				June 30, 2018
	(unaudited)
	(In $ millions, except per share data)
Net Earnings (Loss)	210				338				345
Adjusted EBIT(1)(2)
Engineered Materials	148				183				175
Acetate Tow	71				72				77
Acetyl Chain	189				203				277
Other Activities	(32		)		(37		)		(38		)
Total	376				421				491
Equity Earnings and Dividend Income, Other Income (Expense)
Engineered Materials	36				46				54
Acetate Tow	29				32				33
Operating EBITDA(1)	458				502				573
Diluted EPS - continuing operations	$	1.67			$	2.64			$	2.52
Diluted EPS - total	$	1.66			$	2.63			$	2.52
Adjusted EPS(1)	$	2.38			$	2.62			$	2.90
Net cash provided by (used in) investing activities	(66		)		(177		)		(96		)
Net cash provided by (used in) financing activities	(307		)		(130		)		(254		)
Net cash provided by (used in) operating activities	424				307				585
Free cash flow(1)	356				224				500

______________________________
(1)	See "Non-US GAAP Financial Measures" below.
(2)	The Company's discussion of adjusted earnings includes use of the term "segment income". This non-GAAP term is defined below and reconciled in our Non-US GAAP Financial Measures and Supplemental Information document referenced below.

Second Quarter 2019 Highlights:

• Announced the shutdown of acetate flake production at the Ocotlán, Jalisco, Mexico manufacturing facility by October 31, 2019, ceasing all manufacturing operations at the facility and further consolidating the global acetate manufacturing operations.
• Completed the addition of a new GUR® ultra-high molecular weight polyethylene (UHMW-PE) production line at the Nanjing, China manufacturing facility to support significant growth in the electric vehicle market. The new production line adds approximately 15 kt per year of additional product capacity.
• Delivered 1,177 Engineered Materials project wins in the second quarter of 2019 and on track to commercialize more than 4,000 projects for the year.
• Completed a registered offering of $500 million of U.S. dollar-denominated senior notes due in 2024. The Company simultaneously entered into a cross-currency swap to effectively convert to a euro-denominated borrowing with a net borrowing rate of 1.03 percent.
• Completed $1.2 billion in share repurchases over the last 12 months or 9 percent of outstanding shares.

Second Quarter 2019 Business Segment Overview

Engineered Materials (EM)

Engineered Materials recorded net sales of $593 million in the second quarter. The volume impact on net sales was a decline of 7 percent sequentially, comprised of a 4 percent decline in volumetric polymer sales primarily due to demand weakness and industry destocking, as well as a 3 percent sequential mix impact which includes the timing of medical sales. The industry saw broad price declines in Asia and competitive pricing pressure globally in nylon, but the Company offset much of this pressure, holding the sequential price decline to 3 percent. GAAP operating profit was $103 million and segment income was $148 million as the business worked to overcome demand softness across multiple end markets, continued destocking, and weaker affiliate performance. The business continued to execute its customer needs based project model to commercialize 1,177 projects, delivering performance in excess of weaker underlying end markets including automotive and electronics.

Acetyl Chain

The Acetyl Chain recorded second quarter net sales of $865 million, as sequential volume growth of 2 percent largely offset a decline in industry acetic acid pricing. GAAP operating profit was $188 million and segment income was $189 million, as the Acetyl Chain global system pivoted downstream to VAM and emulsions to generate incremental value. GAAP operating and segment income margin performance of 22 percent confirms the ability of the Acetyl Chain to generate earnings performance that is differentiated versus the market environment. The Acetyl Chain delivered sequential volume growth, despite major VAM turnarounds at Bay City and Nanjing, through rigorous inventory planning and product sourcing. High-return investments are underway, which will generate significant productivity gains and further expand the efficiency and operating flexibility of the global acetyls network.

Acetate Tow

Acetate Tow reported a GAAP operating loss of $44 million, including an impairment charge of $83 million relating to the Ocotlán shutdown, and segment income of $71 million in the second quarter. Price and volume in the quarter were stable year over year and sequentially, reflecting strong execution and steadier industry dynamics. Dividends from affiliates were $29 million in the second quarter, down slightly from the first quarter due to the impact of timing and currency.

Cash Flow and Tax

The Company delivered operating cash flow of $424 million and free cash flow of $356 million in the quarter, driven by improved conversion of earnings to cash through working capital management. Capital expenditures in the quarter were $65 million, with roughly half of non-maintenance spend through the first half of the year devoted to cost reduction projects. The Company is on pace for capital expenditures approaching $400 million for the year. A total of $378 million in cash was returned to shareholders, including $300 million in share repurchases and $78 million in dividends. The Company repurchased 2 percent of total shares outstanding in the quarter and 9 percent over the last twelve months. The US GAAP effective tax rate was 12 percent in the second quarter compared to 22 percent in the same quarter of last year, primarily due to 2019 reductions in a valuation allowance on future foreign tax credit usage. The adjusted tax rate was 14 percent in the quarter, unchanged year over year.

Outlook

"Our teams successfully executed on the unique business models we have in place to again deliver solid earnings performance amid a very challenging economic backdrop," said Lori Ryerkerk, chief executive officer. "The Acetyl Chain flexed its global network to drive incremental value downstream and deliver robust foundational earnings despite weak industry fundamentals. Engineered Materials worked the project pipeline model to deliver results in excess of underlying end market demand conditions. Acetate Tow again displayed a stabilized earnings profile, generating adjusted earnings consistent with last quarter. Looking forward, we continue to see a path to 2019 adjusted earnings of approximately $10.50 per share based on an expectation that underlying fundamentals will improve as we progress through the end of the year. We continue to strengthen our businesses by executing on our continuous productivity programs and strategically investing in high-return organic projects."

We are unable to reconcile forecasted adjusted earnings per share growth to US GAAP diluted earnings per share without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, is not practical.

The Company's prepared remarks related to the second quarter results will be posted on its website at investors.celanese.com under Financial Information/Financial Document Library after market close on July 22, 2019. Information about Non-US GAAP measures is included in a Non-US GAAP Financial Measures and Supplemental Information document posted on our website. See "Non-GAAP Financial Measures" below.

Celanese Corporation is a global chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2018 net sales of $7.2 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com or our blog at www.celaneseblog.com.

Forward-Looking Statements

This release may contain "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements contained in this release. These risks and uncertainties include, among other things: changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate; the length and depth of product and industry business cycles, particularly in the automotive, electrical, textiles, electronics and construction industries; changes in the price and availability of raw materials, particularly changes in the demand for, supply of, and market prices of ethylene, methanol, natural gas, wood pulp and fuel oil and the prices for electricity and other energy sources; the ability to pass increases in raw material prices on to customers or otherwise improve margins through price increases; the ability to maintain plant utilization rates and to implement planned capacity additions and expansions; the ability to reduce or maintain their current levels of production costs and to improve productivity by implementing technological improvements to existing plants; increased price competition and the introduction of competing products by other companies; market acceptance of our technology; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the Company; changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property; compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, cyber security incidents, terrorism or political unrest or other unforeseen events or delays in construction or operation of facilities, including as a result of geopolitical conditions, the occurrence of acts of war or terrorist incidents or as a result of weather or natural disasters; potential liability for remedial actions and increased costs under existing or future environmental regulations, including those relating to climate change; potential liability resulting from pending or future litigation, or from changes in the laws, regulations or policies of governments or other governmental activities in the countries in which we operate; changes in currency exchange rates and interest rates; our level of indebtedness, which could diminish our ability to raise additional capital to fund operations or limit our ability to react to changes in the economy or the chemicals industry; and various other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

Non-GAAP Financial Measures

Presentation

This document presents the Company's three business segments, Engineered Materials, Acetate Tow and Acetyl Chain.

Use of Non-US GAAP Financial Information

This release uses the following Non-US GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, adjusted earnings per share and free cash flow. These measures are not recognized in accordance with US GAAP and should not be viewed as an alternative to US GAAP measures of performance or liquidity. The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin is operating margin; for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; and for free cash flow is net cash provided by (used in) operations.

Definitions of Non-US GAAP Financial Measures

• Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8 of our Non-US GAAP Financial Measures and Supplemental Information document). We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales.
• Adjusted EBIT by business segment may also be referred to by management as segment income. Adjusted EBIT margin by business segment may also be referred to by management as segment income margin.
• Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization.
• Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We do not provide reconciliations for adjusted earnings per share on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information.
  
  Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a of our Non-US GAAP Financial Measures and Supplemental Information document summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results.
  
  
• Free cash flow is a liquidity measure used by the Company and is defined by the Company as cash flow from operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway").

Reconciliation of Non-US GAAP Financial Measures

Reconciliations of the Non-US GAAP financial measures used in this press release to the comparable US GAAP financial measure, together with information about the purposes and uses of Non-US GAAP financial measures, are included in our Non-US GAAP Financial Measures and Supplemental Information document filed as an exhibit to our Current Report on Form 8-K filed with the SEC on or about July 22, 2019 and also available on our website at investors.celanese.com under Financial Information/Non-GAAP Financial Measures.

Results Unaudited

The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.

Supplemental Information

Additional information about our prior period performance is included in our Quarterly Reports on Form 10-Q and in our Non-US GAAP Financial Measures and Supplemental Information document.

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Consolidated Statements of Operations - Unaudited

	Three Months Ended
	June 30, 2019			March 31, 2019			June 30, 2018
	(In $ millions, except share and per share data)
Net sales	1,592			1,687			1,844
Cost of sales	(1,169	)		(1,234	)		(1,323	)
Gross profit	423			453			521
Selling, general and administrative expenses	(118	)		(120	)		(136	)
Amortization of intangible assets	(6	)		(6	)		(7	)
Research and development expenses	(17	)		(16	)		(18	)
Other (charges) gains, net	(98	)		4			(3	)
Foreign exchange gain (loss), net	1			5			3
Gain (loss) on disposition of businesses and assets, net	1			—			(2	)
Operating profit (loss)	186			320			358
Equity in net earnings (loss) of affiliates	39			50			56
Non-operating pension and other postretirement employee benefit (expense) income	17			17			26
Interest expense	(29	)		(31	)		(32	)
Refinancing expense	(4	)		—			—
Interest income	2			1			—
Dividend income - equity investments	30			32			34
Other income (expense), net	(2	)		(4	)		—
Earnings (loss) from continuing operations before tax	239			385			442
Income tax (provision) benefit	(28	)		(46	)		(97	)
Earnings (loss) from continuing operations	211			339			345
Earnings (loss) from operation of discontinued operations	(2	)		(1	)		—
Income tax (provision) benefit from discontinued operations	1			—			—
Earnings (loss) from discontinued operations	(1	)		(1	)		—
Net earnings (loss)	210			338			345
Net (earnings) loss attributable to noncontrolling interests	(1	)		(1	)		(1	)
Net earnings (loss) attributable to Celanese Corporation	209			337			344
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations	210			338			344
Earnings (loss) from discontinued operations	(1	)		(1	)		—
Net earnings (loss)	209			337			344
Earnings (loss) per common share - basic
Continuing operations	1.68			2.65			2.54
Discontinued operations	(0.01	)		(0.01	)		—
Net earnings (loss) - basic	1.67			2.64			2.54
Earnings (loss) per common share - diluted
Continuing operations	1.67			2.64			2.52
Discontinued operations	(0.01	)		(0.01	)		—
Net earnings (loss) - diluted	1.66			2.63			2.52
Weighted average shares (in millions)
Basic	125.3			127.5			135.6
Diluted	125.8			128.2			136.3

Consolidated Balance Sheets - Unaudited

	As of June 30, 2019			As of December 31, 2018
	(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents	491			439
Trade receivables - third party and affiliates, net	971			1,017
Non-trade receivables, net	332			301
Inventories	1,011			1,046
Marketable securities, at fair value	27			31
Other assets	44			40
Total current assets	2,876			2,874
Investments in affiliates	959			979
Property, plant and equipment, net	3,642			3,719
Operating lease right-of-use assets	209			—
Deferred income taxes	90			84
Other assets	320			290
Goodwill	1,083			1,057
Intangible assets, net	327			310
Total assets	9,506			9,313
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates	319			561
Trade payables - third party and affiliates	764			819
Other liabilities	302			343
Income taxes payable	23			56
Total current liabilities	1,408			1,779
Long-term debt, net of unamortized deferred financing costs	3,444			2,970
Deferred income taxes	265			255
Uncertain tax positions	171			158
Benefit obligations	545			564
Operating lease liabilities	192			—
Other liabilities	227			208
Commitments and Contingencies
Stockholders' Equity
Treasury stock, at cost	(3,347	)		(2,849	)
Additional paid-in capital	233			233
Retained earnings	6,245			5,847
Accumulated other comprehensive income (loss), net	(267	)		(247	)
Total Celanese Corporation stockholders' equity	2,864			2,984
Noncontrolling interests	390			395
Total equity	3,254			3,379
Total liabilities and equity	9,506			9,313

Non-US GAAP Financial Measures and Supplemental Information

July 22, 2019

In this document, the terms the "Company," "we" and "our" refer to Celanese Corporation and its subsidiaries on a consolidated basis.

Purpose

The purpose of this document is to provide information of interest to investors, analysts and other parties including supplemental financial information and reconciliations and other information concerning our use of non-US GAAP financial measures. This document is updated quarterly.

Presentation

This document presents the Company's three business segments, Engineered Materials, Acetate Tow and Acetyl Chain.

Use of Non-US GAAP Financial Measures

From time to time, management may publicly disclose certain numerical "non-GAAP financial measures" in the course of our earnings releases, financial presentations, earnings conference calls, investor and analyst meetings and otherwise. For these purposes, the Securities and Exchange Commission ("SEC") defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with US GAAP, and vice versa for measures that include amounts, or are subject to adjustments that effectively include amounts, that are excluded from the most directly comparable US GAAP measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States.

Non-GAAP financial measures disclosed by management are provided as additional information to investors, analysts and other parties because the Company believes them to be important supplemental measures for assessing our financial and operating results and as a means to evaluate our financial condition and period-to-period comparisons. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered in isolation or as alternatives to, net earnings (loss), operating profit (loss), operating margin, cash flow from operating activities (together with cash flow from investing and financing activities), earnings per share or any other US GAAP financial measure. These non-GAAP financial measures should be considered within the context of our complete audited and unaudited financial results for the given period, which are available on the Financial Information/Financial Document Library page of our website, investors.celanese.com. The definition and method of calculation of the non-GAAP financial measures used herein may be different from other companies' methods for calculating measures with the same or similar titles. Investors, analysts and other parties should understand how another company calculates such non-GAAP financial measures before comparing the other company's non-GAAP financial measures to any of our own. These non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive or projections of future results.

Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also present in this document, in the presentation itself or on a Form 8-K in connection with the presentation on the Financial Information/Non-GAAP Financial Measures page of our website, investors.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

This document includes definitions and reconciliations of non-GAAP financial measures used from time to time by the Company.

Specific Measures Used

This document provides information about the following non-GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, operating profit (loss) attributable to Celanese Corporation, adjusted earnings per share, net debt, free cash flow and return on invested capital (adjusted). The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin and operating EBITDA margin is operating margin; for operating profit (loss) attributable to Celanese Corporation is operating profit (loss); for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; for net debt is total debt; for free cash flow is net cash provided by (used in) operations; and for return on invested capital (adjusted) is net earnings (loss) attributable to Celanese Corporation divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity.

Definitions

• Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8). We believe that adjusted EBIT provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that adjusted EBIT has inherent limitations because of the excluded items. Adjusted EBIT is one of the measures management uses for planning and budgeting, monitoring and evaluating financial and operating results and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales. Adjusted EBIT margin has the same uses and limitations as Adjusted EBIT.
• Adjusted EBIT by business segment may also be referred to by management as segment income. Adjusted EBIT margin by business segment may also be referred to by management as segment income margin.
• Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization. We believe that Operating EBITDA provides transparent and useful information to investors, analysts and other parties in evaluating our operating performance relative to our peer companies. Operating EBITDA margin is defined by the Company as Operating EBITDA divided by net sales. Operating EBITDA margin has the same uses and limitations as Operating EBITDA.
• Operating profit (loss) attributable to Celanese Corporation is defined by the Company as operating profit (loss), less earnings (loss) attributable to noncontrolling interests ("NCI"). We believe that operating profit (loss) attributable to Celanese Corporation provides transparent and useful information to management, investors, analysts and other parties in evaluating our core operational performance. Operating margin attributable to Celanese Corporation is defined by the Company as operating profit (loss) attributable to Celanese Corporation divided by net sales. Operating margin attributable to Celanese Corporation has the same uses and limitations as Operating profit (loss) attributable to Celanese Corporation.
• Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We believe that adjusted earnings per share provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of the above stated items that affect comparability and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted earnings per share on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information.
  
  Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results.
  
  
• Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway"). We believe that free cash flow provides useful information to management, investors, analysts and other parties in evaluating the Company's liquidity and credit quality assessment because it provides an indication of the long-term cash generating ability of our business. Although we use free cash flow as a measure to assess the liquidity generated by our business, the use of free cash flow has important limitations, including that free cash flow does not reflect the cash requirements necessary to service our indebtedness, lease obligations, unconditional purchase obligations or pension and postretirement funding obligations.
• Net debt is defined by the Company as total debt less cash and cash equivalents. We believe that net debt provides useful information to management, investors, analysts and other parties in evaluating changes to the Company's capital structure and credit quality assessment.
• Return on invested capital (adjusted) is defined by the Company as adjusted EBIT, tax effected using the adjusted tax rate, divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity. We believe that return on invested capital (adjusted) provides useful information to management, investors, analysts and other parties in order to assess our income generation from the point of view of our stockholders and creditors who provide us with capital in the form of equity and debt and whether capital invested in the Company yields competitive returns.

Supplemental Information

Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following:

• Net sales for each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for each of our business segments.
• Cash dividends received from our equity investments.
• For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside stockholders' interests are shown as NCI. Beginning in 2014, this includes Fairway for which the Company's ownership percentage is 50%. Amounts referred to as "attributable to Celanese Corporation" are net of any applicable NCI.

Results Unaudited

The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.

Table 1

Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited

	Q2 '19			Q1 '19			2018			Q4 '18			Q3 '18			Q2 '18			Q1 '18
	(In $ millions)
Net earnings (loss) attributable to Celanese Corporation	209			337			1,207			99			401			344			363
(Earnings) loss from discontinued operations	1			1			5			(3	)		6			—			2
Interest income	(2	)		(1	)		(6	)		(2	)		(2	)		—			(2	)
Interest expense	29			31			125			30			30			32			33
Refinancing expense	4			—			1			1			—			—			—
Income tax provision (benefit)	28			46			292			76			54			97			65
Certain Items attributable to Celanese Corporation (Table 8)	107			7			228			192			5			18			13
Adjusted EBIT	376			421			1,852			393			494			491			474
Depreciation and amortization expense(1)	82			81			316			78			77			82			79
Operating EBITDA	458			502			2,168			471			571			573			553
	Q2 '19			Q1 '19			2018			Q4 '18			Q3 '18			Q2 '18			Q1 '18
	(In $ millions)
Engineered Materials	—			1			1			—			—			1			—
Acetate Tow	2			—			19			5			11			3			—
Acetyl Chain	—			1			7			5			2			—			—
Other Activities(2)	—			—			—			—			—			—			—
Accelerated depreciation and amortization expense	2			2			27			10			13			4			—
Depreciation and amortization expense(1)	82			81			316			78			77			82			79
Total depreciation and amortization expense	84			83			343			88			90			86			79

______________________________
(1)	Excludes accelerated depreciation and amortization expense as detailed in the table above, which amounts are included in Certain Items above.
(2)	Other Activities includes corporate Selling, general and administrative ("SG&A") expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).

Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited

	Q2 '19						Q1 '19						2018						Q4 '18						Q3 '18						Q2 '18						Q1 '18
	(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin
Engineered Materials	103			17.4	%		144			21.7	%		460			17.7	%		95			15.3	%		124			19.3	%		114			17.2	%		127			19.1	%
Acetate Tow	(44	)		(26.8	)%		40			24.1	%		130			20.0	%		19			11.8	%		26			16.5	%		39			24.1	%		46			27.4	%
Acetyl Chain(1)	188			21.7	%		202			22.7	%		1,024			25.3	%		211			22.5	%		287			28.5	%		273			26.0	%		253			24.1	%
Other Activities(2)	(61	)					(66	)					(280	)					(66	)					(63	)					(68	)					(83	)
Total	186			11.7	%		320			19.0	%		1,334			18.6	%		259			15.3	%		374			21.1	%		358			19.4	%		343			18.5	%
Less: Net Earnings (Loss) Attributable to NCI(1)	1						1						6						2						1						1						2
Operating Profit (Loss) Attributable to Celanese Corporation	185			11.6	%		319			18.9	%		1,328			18.6	%		257			15.2	%		373			21.1	%		357			19.4	%		341			18.4	%
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation
Engineered Materials	103			17.4	%		144			21.7	%		460			17.7	%		95			15.3	%		124			19.3	%		114			17.2	%		127			19.1	%
Acetate Tow	(44	)		(26.8	)%		40			24.1	%		130			20.0	%		19			11.8	%		26			16.5	%		39			24.1	%		46			27.4	%
Acetyl Chain(1)	187			21.6	%		201			22.6	%		1,018			25.2	%		209			22.3	%		286			28.4	%		272			25.9	%		251			23.9	%
Other Activities(2)	(61	)					(66	)					(280	)					(66	)					(63	)					(68	)					(83	)
Total	185			11.6	%		319			18.9	%		1,328			18.6	%		257			15.2	%		373			21.1	%		357			19.4	%		341			18.4	%
Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials	36						46						219		(3)				49						62						54						54
Acetate Tow	29						32						116						25						26						33						32
Acetyl Chain	1						1						8						1						2						3						2
Other Activities(2)	1						(1	)					15						8						1						—						6
Total	67						78						358						83						91						90						94
Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation
Engineered Materials	—						—						—						—						—						—						—
Acetate Tow	—						—						—						—						—						—						—
Acetyl Chain	—						—						—						—						—						—						—
Other Activities(2)	17						17						(62	)					(139	)					25						26						26
Total	17						17						(62	)					(139	)					25						26						26
Certain Items Attributable to Celanese Corporation (Table 8)
Engineered Materials	9						(7	)					15						6						1						7						1
Acetate Tow	86						—						27						9						13						5						—
Acetyl Chain	1						1						(4	)					5						(11	)					2						—
Other Activities(2)	11						13						190						172						2						4						12
Total	107						7						228						192						5						18						13
Adjusted EBIT / Adjusted EBIT Margin
Engineered Materials	148			25.0	%		183			27.6	%		694			26.8	%		150			24.1	%		187			29.1	%		175			26.4	%		182			27.4	%
Acetate Tow	71			43.3	%		72			43.4	%		273			42.1	%		53			32.9	%		65			41.1	%		77			47.5	%		78			46.4	%
Acetyl Chain	189			21.8	%		203			22.8	%		1,022			25.3	%		215			23.0	%		277			27.5	%		277			26.4	%		253			24.1	%
Other Activities(2)	(32	)					(37	)					(137	)					(25	)					(35	)					(38	)					(39	)
Total	376			23.6	%		421			25.0	%		1,852			25.9	%		393			23.3	%		494			27.9	%		491			26.6	%		474			25.6	%

___________________________
(1)	Net earnings (loss) attributable to NCI is included within the Acetyl Chain segment.
(2)	Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).
(3)	Includes $218 million of Equity in net earnings (loss) of affiliates and $1 million of Other income.

Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited (cont.)

	Q2 '19						Q1 '19						2018						Q4 '18						Q3 '18						Q2 '18						Q1 '18
	(In $ millions, except percentages)
Depreciation and Amortization Expense(1)
Engineered Materials	31						31						125						30						31						32						32
Acetate Tow	9						10						39						9						10						10						10
Acetyl Chain	38						37						141						36						34						36						35
Other Activities(2)	4						3						11						3						2						4						2
Total	82						81						316						78						77						82						79
Operating EBITDA / Operating EBITDA Margin
Engineered Materials	179			30.2	%		214			32.3	%		819			31.6	%		180			28.9	%		218			34.0	%		207			31.2	%		214			32.2	%
Acetate Tow	80			48.8	%		82			49.4	%		312			48.1	%		62			38.5	%		75			47.5	%		87			53.7	%		88			52.4	%
Acetyl Chain	227			26.2	%		240			27.0	%		1,163			28.8	%		251			26.8	%		311			30.9	%		313			29.8	%		288			27.4	%
Other Activities(2)	(28	)					(34	)					(126	)					(22	)					(33	)					(34	)					(37	)
Total	458			28.8	%		502			29.8	%		2,168			30.3	%		471			27.9	%		571			32.2	%		573			31.1	%		553			29.9	%

___________________________
(1)	Excludes accelerated depreciation and amortization expense, which amounts are included in Certain Items above. See Table 1 for details.
(2)	Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).

Table 3

Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP Measure - Unaudited

	Q2 '19						Q1 '19						2018						Q4 '18						Q3 '18						Q2 '18						Q1 '18
				per share						per share						per share						per share						per share						per share						per share
	(In $ millions, except per share data)
Earnings (loss) from continuing operations attributable to Celanese Corporation	210			1.67			338			2.64			1,212			8.95			96			0.73			407			3.00			344			2.52			365			2.68
Income tax provision (benefit)	28						46						292						76						54						97						65
Earnings (loss) from continuing operations before tax	238						384						1,504						172						461						441						430
Certain Items attributable to Celanese Corporation (Table 8)	107						7						228						192						5						18						13
Refinancing and related expenses	4						—						1						1						—						—						—
Adjusted earnings (loss) from continuing operations before tax	349						391						1,733						365						466						459						443
Income tax (provision) benefit on adjusted earnings(1)	(49	)					(55	)					(243	)					(51	)					(65	)					(64	)					(62	)
Adjusted earnings (loss) from continuing operations(2)	300			2.38			336			2.62			1,490			11.00			314			2.38			401			2.96			395			2.90			381			2.79
	Diluted shares (in millions)(3)
Weighted average shares outstanding	125.3						127.5						134.3						131.2						134.5						135.6						135.9
Incremental shares attributable to equity awards	0.5						0.7						1.1						0.9						1.0						0.7						0.5
Total diluted shares	125.8						128.2						135.4						132.1						135.5						136.3						136.4

______________________________
(1)	Calculated using adjusted effective tax rates (Table 3a) as follows:

	Q2 '19					Q1 '19					2018					Q4 '18					Q3 '18					Q2 '18					Q1 '18
	(In percentages)
Adjusted effective tax rate	14					14					14					14					14					14					14

(2)	Excludes the immediate recognition of actuarial gains and losses and the impact of actual vs. expected plan asset returns.

		Actual Plan Asset Returns			Expected Plan Asset Returns
		(In percentages)
2018		(3.9	)		6.7

(3)	Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.

Table 3a

Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure - Unaudited

	Estimated			Actual
	2019			2018
	(In percentages)
US GAAP annual effective tax rate	13			19
Discrete quarterly recognition of GAAP items(1)	1			—
Utilization of foreign tax credits	(2	)		—
Changes in valuation allowances, excluding impact of other charges and adjustments(2)	1			(5	)
Other(3)	1			—
Adjusted tax rate	14			14

______________________________
Note: As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate for actual results.
(1)	Such as changes in tax laws (including US tax reform), deferred taxes on outside basis differences, changes in uncertain tax positions and prior year audit adjustments.
(2)	Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations, excluding other charges and adjustments.
(3)	Tax impacts related to full-year forecasted tax opportunities and related costs.

Table 4

Net Sales by Segment - Unaudited

	Q2 '19			Q1 '19			2018			Q4 '18			Q3 '18			Q2 '18			Q1 '18
	(In $ millions)
Engineered Materials	593			663			2,593			622			642			664			665
Acetate Tow	164			166			649			161			158			162			168
Acetyl Chain	865			889			4,042			936			1,006			1,049			1,051
Intersegment eliminations(1)	(30	)		(31	)		(129	)		(30	)		(35	)		(31	)		(33	)
Net sales	1,592			1,687			7,155			1,689			1,771			1,844			1,851

___________________________
(1)	Includes intersegment sales primarily related to the Acetyl Chain.

Table 4a

Factors Affecting Segment Net Sales Sequentially - Unaudited

Three Months Ended June 30, 2019 Compared to Three Months Ended March 31, 2019

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	(7	)		(3	)		(1	)		—			(11	)
Acetate Tow	(1	)		—			—			—			(1	)
Acetyl Chain	2			(4	)		(1	)		—			(3	)
Total Company	(2	)		(3	)		(1	)		—			(6	)

Three Months Ended March 31, 2019 Compared to Three Months Ended December 31, 2018

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	5			2			—			—			7		(1)
Acetate Tow	1			2			—			—			3
Acetyl Chain	5			(10	)		—			—			(5	)
Total Company	5			(5	)		—			—			—

Three Months Ended December 31, 2018 Compared to Three Months Ended September 30, 2018

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	(4	)		2			(1	)		—			(3	)
Acetate Tow	2			(1	)		—			—			1
Acetyl Chain	(3	)		(4	)		(1	)		1			(7	)
Total Company	(3	)		(2	)		(1	)		1			(5	)

Three Months Ended September 30, 2018 Compared to Three Months Ended June 30, 2018

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	(2	)		—			(1	)		—			(3	)
Acetate Tow	(2	)		—			—			—			(2	)
Acetyl Chain	(4	)		2			(2	)		—			(4	)
Total Company	(3	)		1			(2	)		—			(4	)

Three Months Ended June 30, 2018 Compared to Three Months Ended March 31, 2018

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	(1	)		3			(2	)		—			—
Acetate Tow	(3	)		—			(1	)		—			(4	)
Acetyl Chain	(2	)		4			(1	)		(1	)		—
Total Company	(2	)		3			(1	)		—			—

Three Months Ended March 31, 2018 Compared to Three Months Ended December 31, 2017

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	10			3			2			—			15		(2)
Acetate Tow	8			—			—			—			8
Acetyl Chain	8			9			3			(2	)		18
Total Company	9			6			2			(1	)		16

_________________________
(1)	2019 includes the effect of the acquisition of Next Polymers Ltd.
(2)	2018 includes the effect of the acquisition of Omni Plastics, L.L.C.

Table 4b

Factors Affecting Segment Net Sales Year Over Year - Unaudited

Three Months Ended June 30, 2019 Compared to Three Months Ended June 30, 2018

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	(8	)		—			(3	)		—			(11	)
Acetate Tow	1			1			(1	)		—			1
Acetyl Chain	(1	)		(14	)		(3	)		—			(18	)
Total Company	(3	)		(8	)		(3	)		—			(14	)

Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	(3	)		7			(4	)		—			—
Acetate Tow	(1	)		—			—			—			(1	)
Acetyl Chain	(4	)		(8	)		(3	)		—			(15	)
Total Company	(3	)		(2	)		(4	)		—			(9	)

Three Months Ended December 31, 2018 Compared to Three Months Ended December 31, 2017

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	2			7			(2	)		—			7
Acetate Tow	5			(2	)		—			—			3
Acetyl Chain	(2	)		10			(2	)		(1	)		5
Total Company	—			8			(2	)		—			6

Three Months Ended September 30, 2018 Compared to Three Months Ended September 30, 2017

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	7			6			(1	)		—			12
Acetate Tow	5			(3	)		—			(1	)		1
Acetyl Chain	(3	)		22			—			(2	)		17
Total Company	1			14			(1	)		(1	)		13

Three Months Ended June 30, 2018 Compared to Three Months Ended June 30, 2017

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	11			7			4			—			22
Acetate Tow	1			(2	)		—			—			(1	)
Acetyl Chain	6			19			5			(3	)		27
Total Company	7			13			4			(2	)		22

Three Months Ended March 31, 2018 Compared to Three Months Ended March 31, 2017

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	19			3			7			—			29
Acetate Tow	(9	)		(4	)		1			—			(12	)
Acetyl Chain	3			25			7			(3	)		32
Total Company	7			14			6			(1	)		26

Table 4c

Factors Affecting Segment Net Sales Year Over Year - Unaudited

Year Ended December 31, 2018 Compared to Year Ended December 31, 2017

	Volume			Price			Currency			Other			Total
	(In percentages)
Engineered Materials	9			6			2			—			17
Acetate Tow	—			(3	)		—			—			(3	)
Acetyl Chain	1			19			2			(2	)		20
Total Company	4			12			2			(1	)		17

Table 5

Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited

	Q2 '19			Q1 '19			2018			Q4 '18			Q3 '18			Q2 '18			Q1 '18
	(In $ millions, except percentages)
Net cash provided by (used in) investing activities	(66	)		(177	)		(507	)		(98	)		(78	)		(96	)		(235	)
Net cash provided by (used in) financing activities	(307	)		(130	)		(1,165	)		(526	)		(383	)		(254	)		(2	)
Net cash provided by (used in) operating activities	424			307			1,558			363			467			585			143
Capital expenditures on property, plant and equipment	(65	)		(79	)		(337	)		(93	)		(79	)		(79	)		(86	)
Capital (distributions to) contributions from NCI	(3	)		(4	)		(23	)		(9	)		(6	)		(6	)		(2	)
Free cash flow(1)(2)	356			224			1,198			261			382			500			55
Net sales	1,592			1,687			7,155			1,689			1,771			1,844			1,851
Free cash flow as % of Net sales	22.4	%		13.3	%		16.7	%		15.5	%		21.6	%		27.1	%		3.0	%

______________________________
(1)	Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operating activities, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our joint venture, Fairway Methanol LLC ("Fairway").
(2)	Excludes required debt service and finance lease payments of $24 million and $63 million for the years ending December 31, 2019 and 2018, respectively.

Table 6

Cash Dividends Received - Unaudited

	Q2 '19			Q1 '19			2018			Q4 '18			Q3 '18			Q2 '18			Q1 '18
	(In $ millions)
Dividends from equity method investments	41			70			221			62			44			39			76
Dividends from equity investments without readily determinable fair values	30			32			117			25			26			34			32
Total	71			102			338			87			70			73			108

Table 7

Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited

	Q2 '19			Q1 '19			2018			Q4 '18			Q3 '18			Q2 '18			Q1 '18
	(In $ millions)
Short-term borrowings and current installments of long-term debt - third party and affiliates	319			743			561			561			229			366			425
Long-term debt, net of unamortized deferred financing costs	3,444			2,933			2,970			2,970			3,196			3,228			3,343
Total debt	3,763			3,676			3,531			3,531			3,425			3,594			3,768
Cash and cash equivalents	(491	)		(441	)		(439	)		(439	)		(703	)		(708	)		(490	)
Net debt	3,272			3,235			3,092			3,092			2,722			2,886			3,278

Table 8

Certain Items - Unaudited

The following Certain Items attributable to Celanese Corporation are included in Net earnings (loss) and are adjustments to non-GAAP measures:

	Q2 '19			Q1 '19			2018			Q4 '18			Q3 '18			Q2 '18			Q1 '18			Income Statement Classification
	(In $ millions)
Plant/office closures	2			3			19			16			—			3			—			Cost of sales / Other charges (gains), net
Asset impairments	83			—			—												—			Other charges (gains), net
Mergers and acquisitions	4			3			33			6			3			11			13			Cost of sales / SG&A
Actuarial (gain) loss on pension and postretirement plans	—			—			166			166			—			—			—			Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit expense (income)
Restructuring	15			(1	)		9			4			2			3			—			SG&A / Other charges (gains), net / Non-operating pension and other postretirement employee benefit expense (income)
Other	3			2			1			—			—			1			—			Cost of sales / SG&A / Other charges (gains), net
Certain Items attributable to Celanese Corporation	107			7			228			192			5			18			13

Table 9

Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited

							2018
							(In $ millions, except percentages)
Net earnings (loss) attributable to Celanese Corporation							1,207
Adjusted EBIT (Table 1)							1,852
Adjusted effective tax rate (Table 3a)							14	%
Adjusted EBIT tax effected							1,593
	2018			2017			Average
	(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt - third parties and affiliates	561			326			444
Long-term debt, net of unamortized deferred financing costs	2,970			3,315			3,143
Celanese Corporation stockholders' equity	2,984			2,887			2,936
Invested capital							6,523
Return on invested capital (adjusted)							24.4	%
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital							18.5	%

 

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