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Share Name | Share Symbol | Market | Type |
---|---|---|---|
LyondellBasell Industries NV | NYSE:LYB | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.38 | 1.39% | 100.50 | 693 | 13:27:49 |
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Netherlands
|
|
|
|
|
98-0646235
|
|
|
|
(State or other jurisdiction of
incorporation or organization)
|
|
|
|
(I.R.S. Employer
Identification No.)
|
|
|
1221 McKinney St.,
|
|
4th Floor, One Vine Street
|
|
|
|
|
|||
|
Suite 300
|
|
London
|
|
Delftseplein 27E
|
|
||||
|
Houston,
|
Texas
|
|
W1J0AH
|
|
3013AA
|
Rotterdam
|
|
||
|
USA
|
77010
|
|
United Kingdom
|
|
Netherlands
|
|
|
(713)
|
309-7200
|
|
+44 (0)
|
207
|
220 2600
|
|
+31 (0)
|
10
|
2755 500
|
|
Title of Each Class
|
|
Trading Symbol
|
|
Name of Each Exchange On Which Registered
|
Ordinary Shares, €0.04 Par Value
|
|
LYB
|
|
New York Stock Exchange
|
Large accelerated filer
|
x
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars, except earnings per share
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
||||||||
Trade
|
$
|
8,527
|
|
|
$
|
9,926
|
|
|
$
|
25,920
|
|
|
$
|
29,441
|
|
Related parties
|
195
|
|
|
229
|
|
|
628
|
|
|
687
|
|
||||
|
8,722
|
|
|
10,155
|
|
|
26,548
|
|
|
30,128
|
|
||||
Operating costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of sales
|
7,269
|
|
|
8,499
|
|
|
22,257
|
|
|
24,801
|
|
||||
Selling, general and administrative expenses
|
303
|
|
|
309
|
|
|
892
|
|
|
803
|
|
||||
Research and development expenses
|
26
|
|
|
30
|
|
|
81
|
|
|
87
|
|
||||
|
7,598
|
|
|
8,838
|
|
|
23,230
|
|
|
25,691
|
|
||||
Operating income
|
1,124
|
|
|
1,317
|
|
|
3,318
|
|
|
4,437
|
|
||||
Interest expense
|
(86
|
)
|
|
(90
|
)
|
|
(259
|
)
|
|
(272
|
)
|
||||
Interest income
|
5
|
|
|
14
|
|
|
16
|
|
|
40
|
|
||||
Other income, net
|
11
|
|
|
17
|
|
|
46
|
|
|
57
|
|
||||
Income from continuing operations before equity investments and income taxes
|
1,054
|
|
|
1,258
|
|
|
3,121
|
|
|
4,262
|
|
||||
Income from equity investments
|
51
|
|
|
89
|
|
|
179
|
|
|
253
|
|
||||
Income from continuing operations before income taxes
|
1,105
|
|
|
1,347
|
|
|
3,300
|
|
|
4,515
|
|
||||
Provision for income taxes
|
136
|
|
|
232
|
|
|
508
|
|
|
514
|
|
||||
Income from continuing operations
|
969
|
|
|
1,115
|
|
|
2,792
|
|
|
4,001
|
|
||||
Loss from discontinued operations, net of tax
|
(4
|
)
|
|
(2
|
)
|
|
(7
|
)
|
|
(3
|
)
|
||||
Net income
|
965
|
|
|
1,113
|
|
|
2,785
|
|
|
3,998
|
|
||||
Dividends on A. Schulman Special Stock
|
(2
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
||||
Net income attributable to the Company shareholders
|
$
|
963
|
|
|
$
|
1,113
|
|
|
$
|
2,780
|
|
|
$
|
3,998
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to the Company shareholders —
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
2.86
|
|
|
$
|
2.86
|
|
|
$
|
7.74
|
|
|
$
|
10.21
|
|
Discontinued operations
|
(0.01
|
)
|
|
—
|
|
|
(0.02
|
)
|
|
(0.01
|
)
|
||||
|
$
|
2.85
|
|
|
$
|
2.86
|
|
|
$
|
7.72
|
|
|
$
|
10.20
|
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
2.86
|
|
|
$
|
2.85
|
|
|
$
|
7.74
|
|
|
$
|
10.19
|
|
Discontinued operations
|
(0.01
|
)
|
|
—
|
|
|
(0.02
|
)
|
|
(0.01
|
)
|
||||
|
$
|
2.85
|
|
|
$
|
2.85
|
|
|
$
|
7.72
|
|
|
$
|
10.18
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
965
|
|
|
$
|
1,113
|
|
|
$
|
2,785
|
|
|
$
|
3,998
|
|
Other comprehensive income (loss), net of tax –
|
|
|
|
|
|
|
|
||||||||
Financial derivatives
|
(112
|
)
|
|
51
|
|
|
(230
|
)
|
|
89
|
|
||||
Unrealized gains on available-for-sale debt securities
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Defined benefit pension and other postretirement benefit plans
|
5
|
|
|
6
|
|
|
15
|
|
|
20
|
|
||||
Foreign currency translations
|
(114
|
)
|
|
(8
|
)
|
|
(106
|
)
|
|
(63
|
)
|
||||
Total other comprehensive income (loss), net of tax
|
(221
|
)
|
|
49
|
|
|
(320
|
)
|
|
46
|
|
||||
Comprehensive income
|
744
|
|
|
1,162
|
|
|
2,465
|
|
|
4,044
|
|
||||
Dividends on A. Schulman Special Stock
|
(2
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
||||
Comprehensive income attributable to the Company shareholders
|
$
|
742
|
|
|
$
|
1,162
|
|
|
$
|
2,460
|
|
|
$
|
4,044
|
|
Millions of dollars
|
September 30,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
476
|
|
|
$
|
332
|
|
Restricted cash
|
36
|
|
|
69
|
|
||
Short-term investments
|
53
|
|
|
892
|
|
||
Accounts receivable:
|
|
|
|
||||
Trade, net
|
3,331
|
|
|
3,355
|
|
||
Related parties
|
138
|
|
|
148
|
|
||
Inventories
|
4,446
|
|
|
4,515
|
|
||
Prepaid expenses and other current assets
|
1,150
|
|
|
1,255
|
|
||
Total current assets
|
9,630
|
|
|
10,566
|
|
||
Operating lease assets
|
1,510
|
|
|
—
|
|
||
Property, plant and equipment, at cost
|
20,528
|
|
|
18,701
|
|
||
Less: Accumulated depreciation
|
(6,859
|
)
|
|
(6,224
|
)
|
||
Property, plant and equipment, net
|
13,669
|
|
|
12,477
|
|
||
Investments and long-term receivables:
|
|
|
|
||||
Investment in PO joint ventures
|
486
|
|
|
469
|
|
||
Equity investments
|
1,609
|
|
|
1,611
|
|
||
Other investments and long-term receivables
|
24
|
|
|
23
|
|
||
Goodwill
|
1,848
|
|
|
1,814
|
|
||
Intangible assets, net
|
841
|
|
|
965
|
|
||
Other assets
|
497
|
|
|
353
|
|
||
Total assets
|
$
|
30,114
|
|
|
$
|
28,278
|
|
Millions of dollars, except shares and par value data
|
September 30,
2019 |
|
December 31,
2018 |
||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current maturities of long-term debt
|
$
|
4
|
|
|
$
|
5
|
|
Short-term debt
|
2,438
|
|
|
885
|
|
||
Accounts payable:
|
|
|
|
||||
Trade
|
2,687
|
|
|
2,560
|
|
||
Related parties
|
514
|
|
|
527
|
|
||
Accrued liabilities
|
1,745
|
|
|
1,536
|
|
||
Total current liabilities
|
7,388
|
|
|
5,513
|
|
||
Long-term debt
|
9,628
|
|
|
8,497
|
|
||
Operating lease liabilities
|
1,257
|
|
|
—
|
|
||
Other liabilities
|
1,801
|
|
|
1,897
|
|
||
Deferred income taxes
|
2,018
|
|
|
1,975
|
|
||
Commitments and contingencies
|
|
|
|
||||
Redeemable non-controlling interests
|
116
|
|
|
116
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Ordinary shares, €0.04 par value, 1,275 million shares authorized, 333,407,876
and 375,696,661 shares outstanding, respectively
|
22
|
|
|
22
|
|
||
Additional paid-in capital
|
7,017
|
|
|
7,041
|
|
||
Retained earnings
|
8,430
|
|
|
6,763
|
|
||
Accumulated other comprehensive loss
|
(1,683
|
)
|
|
(1,363
|
)
|
||
Treasury stock, at cost, 66,802,404 and 24,513,619 ordinary shares, respectively
|
(5,898
|
)
|
|
(2,206
|
)
|
||
Total Company share of stockholders’ equity
|
7,888
|
|
|
10,257
|
|
||
Non-controlling interests
|
18
|
|
|
23
|
|
||
Total equity
|
7,906
|
|
|
10,280
|
|
||
Total liabilities, redeemable non-controlling interests and equity
|
$
|
30,114
|
|
|
$
|
28,278
|
|
|
Nine Months Ended
September 30, |
||||||
Millions of dollars
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
2,785
|
|
|
$
|
3,998
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
977
|
|
|
908
|
|
||
Amortization of debt-related costs
|
7
|
|
|
11
|
|
||
Share-based compensation
|
36
|
|
|
33
|
|
||
Equity investments –
|
|
|
|
||||
Equity income
|
(179
|
)
|
|
(253
|
)
|
||
Distributions of earnings, net of tax
|
159
|
|
|
200
|
|
||
Deferred income taxes
|
189
|
|
|
111
|
|
||
Changes in assets and liabilities that provided (used) cash:
|
|
|
|
||||
Accounts receivable
|
(46
|
)
|
|
(128
|
)
|
||
Inventories
|
(12
|
)
|
|
(202
|
)
|
||
Accounts payable
|
(7
|
)
|
|
257
|
|
||
Other, net
|
(190
|
)
|
|
(761
|
)
|
||
Net cash provided by operating activities
|
3,719
|
|
|
4,174
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Expenditures for property, plant and equipment
|
(1,963
|
)
|
|
(1,407
|
)
|
||
Acquisition of A. Schulman, net of cash acquired
|
—
|
|
|
(1,776
|
)
|
||
Purchases of available-for-sale debt securities
|
—
|
|
|
(50
|
)
|
||
Proceeds from sales and maturities of available-for-sale debt securities
|
511
|
|
|
410
|
|
||
Purchases of equity securities
|
—
|
|
|
(64
|
)
|
||
Proceeds from sales and maturities of equity securities
|
332
|
|
|
64
|
|
||
Proceeds from settlement of net investment hedges
|
—
|
|
|
872
|
|
||
Payments for settlement of net investment hedges
|
—
|
|
|
(850
|
)
|
||
Other, net
|
(90
|
)
|
|
(100
|
)
|
||
Net cash used in investing activities
|
(1,210
|
)
|
|
(2,901
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Repurchases of Company ordinary shares
|
(3,752
|
)
|
|
(801
|
)
|
||
Dividends paid - common stock
|
(1,111
|
)
|
|
(1,176
|
)
|
||
Purchase of non-controlling interest
|
(63
|
)
|
|
—
|
|
||
Issuance of short-term debt
|
2,500
|
|
|
—
|
|
||
Issuance of long-term debt
|
2,096
|
|
|
—
|
|
||
Repayments of long-term debt
|
(2,000
|
)
|
|
(394
|
)
|
||
Payments of debt issuance costs
|
(12
|
)
|
|
—
|
|
||
Net (repayments of) proceeds from commercial paper
|
(23
|
)
|
|
140
|
|
||
Other, net
|
(17
|
)
|
|
(11
|
)
|
||
Net cash used in financing activities
|
(2,382
|
)
|
|
(2,242
|
)
|
||
Effect of exchange rate changes on cash
|
(16
|
)
|
|
(27
|
)
|
||
Increase (decrease) in cash and cash equivalents and restricted cash
|
111
|
|
|
(996
|
)
|
||
Cash and cash equivalents and restricted cash at beginning of period
|
401
|
|
|
1,528
|
|
||
Cash and cash equivalents and restricted cash at end of period
|
$
|
512
|
|
|
$
|
532
|
|
|
Ordinary Shares
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Company
Share of
Stockholders’
Equity
|
|
Non-
Controlling
Interests
|
||||||||||||||||
Millions of dollars
|
Issued
|
|
Treasury
|
|
|||||||||||||||||||||||
Balance, June 30, 2019
|
$
|
22
|
|
|
$
|
(2,663
|
)
|
|
$
|
7,006
|
|
|
$
|
7,818
|
|
|
$
|
(1,462
|
)
|
|
$
|
10,721
|
|
|
$
|
22
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
965
|
|
|
—
|
|
|
965
|
|
|
—
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(221
|
)
|
|
(221
|
)
|
|
—
|
|
|||||||
Share-based compensation
|
—
|
|
|
5
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|||||||
Dividends - common stock ($1.05 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(351
|
)
|
|
—
|
|
|
(351
|
)
|
|
—
|
|
|||||||
Dividends - A. Schulman Special Stock ($15.00 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||||||
Repurchases of Company ordinary shares
|
—
|
|
|
(3,240
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,240
|
)
|
|
—
|
|
|||||||
Purchase of non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||||
Balance, September 30, 2019
|
$
|
22
|
|
|
$
|
(5,898
|
)
|
|
$
|
7,017
|
|
|
$
|
8,430
|
|
|
$
|
(1,683
|
)
|
|
$
|
7,888
|
|
|
$
|
18
|
|
|
Ordinary Shares
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Company
Share of
Stockholders’
Equity
|
|
Non-
Controlling
Interests
|
||||||||||||||||
Millions of dollars
|
Issued
|
|
Treasury
|
|
|||||||||||||||||||||||
Balance, June 30, 2018
|
$
|
31
|
|
|
$
|
(16,200
|
)
|
|
$
|
10,190
|
|
|
$
|
17,939
|
|
|
$
|
(1,358
|
)
|
|
$
|
10,602
|
|
|
$
|
1
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,113
|
|
|
—
|
|
|
1,113
|
|
|
—
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
49
|
|
|
—
|
|
|||||||
Share-based compensation
|
—
|
|
|
4
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|||||||
Dividends - common stock ($1.00 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(389
|
)
|
|
—
|
|
|
(389
|
)
|
|
—
|
|
|||||||
Repurchases of Company ordinary shares
|
—
|
|
|
(343
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(343
|
)
|
|
—
|
|
|||||||
Cancellation of treasury shares
|
(9
|
)
|
|
15,384
|
|
|
(3,165
|
)
|
|
(12,210
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Acquisition of A. Schulman Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|||||||
Balance, September 30, 2018
|
$
|
22
|
|
|
$
|
(1,155
|
)
|
|
$
|
7,033
|
|
|
$
|
6,453
|
|
|
$
|
(1,309
|
)
|
|
$
|
11,044
|
|
|
$
|
25
|
|
|
Ordinary Shares
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Company
Share of
Stockholders’
Equity
|
|
Non-
Controlling
Interests
|
||||||||||||||||
Millions of dollars
|
Issued
|
|
Treasury
|
|
|||||||||||||||||||||||
Balance, December 31, 2018
|
$
|
22
|
|
|
$
|
(2,206
|
)
|
|
$
|
7,041
|
|
|
$
|
6,763
|
|
|
$
|
(1,363
|
)
|
|
$
|
10,257
|
|
|
$
|
23
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
2,785
|
|
|
—
|
|
|
2,785
|
|
|
—
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(320
|
)
|
|
(320
|
)
|
|
—
|
|
|||||||
Share-based compensation
|
—
|
|
|
36
|
|
|
23
|
|
|
(2
|
)
|
|
—
|
|
|
57
|
|
|
—
|
|
|||||||
Dividends - common stock ($3.10 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,111
|
)
|
|
—
|
|
|
(1,111
|
)
|
|
—
|
|
|||||||
Dividends - A. Schulman Special Stock ($45.00 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|||||||
Repurchases of Company ordinary shares
|
—
|
|
|
(3,728
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,728
|
)
|
|
—
|
|
|||||||
Purchase of non-controlling interest
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
(5
|
)
|
|||||||
Balance, September 30, 2019
|
$
|
22
|
|
|
$
|
(5,898
|
)
|
|
$
|
7,017
|
|
|
$
|
8,430
|
|
|
$
|
(1,683
|
)
|
|
$
|
7,888
|
|
|
$
|
18
|
|
|
Ordinary Shares
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Company
Share of
Stockholders’
Equity
|
|
Non-
Controlling
Interests
|
||||||||||||||||
Millions of dollars
|
Issued
|
|
Treasury
|
|
|||||||||||||||||||||||
Balance, December 31, 2017
|
$
|
31
|
|
|
$
|
(15,749
|
)
|
|
$
|
10,206
|
|
|
$
|
15,746
|
|
|
$
|
(1,285
|
)
|
|
$
|
8,949
|
|
|
$
|
1
|
|
Adoption of accounting standards
|
—
|
|
|
—
|
|
|
—
|
|
|
95
|
|
|
(70
|
)
|
|
25
|
|
|
—
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
3,998
|
|
|
—
|
|
|
3,998
|
|
|
—
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
46
|
|
|
—
|
|
|||||||
Share-based compensation
|
—
|
|
|
31
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|||||||
Dividends - common stock ($3.00 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,176
|
)
|
|
—
|
|
|
(1,176
|
)
|
|
—
|
|
|||||||
Repurchases of Company ordinary shares
|
—
|
|
|
(821
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(821
|
)
|
|
—
|
|
|||||||
Purchase of non-controlling interest
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|||||||
Cancellation of treasury shares
|
(9
|
)
|
|
15,384
|
|
|
(3,165
|
)
|
|
(12,210
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Acquisition of A. Schulman Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|||||||
Balance, September 30, 2018
|
$
|
22
|
|
|
$
|
(1,155
|
)
|
|
$
|
7,033
|
|
|
$
|
6,453
|
|
|
$
|
(1,309
|
)
|
|
$
|
11,044
|
|
|
$
|
25
|
|
|
|
Page
|
1.
|
||
|
|
|
2.
|
||
|
|
|
3.
|
||
|
|
|
4.
|
||
|
|
|
5.
|
||
|
|
|
6.
|
||
|
|
|
7.
|
||
|
|
|
8.
|
||
|
|
|
9.
|
||
|
|
|
10.
|
||
|
|
|
11.
|
||
|
|
|
12.
|
||
|
|
|
13.
|
||
|
|
|
14.
|
Standard
|
|
Description
|
ASU 2016-02, Leases (including subsequent amendments)
|
|
This guidance establishes a right-of-use model that requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term greater than 12 months. Leases are classified as finance or operating, with classification affecting the timing and classification of expense recognition. This guidance also enhances disclosure requirements.
This guidance is effective for public entities for annual and interim periods beginning after December 15, 2018. We adopted the new standard in the first quarter of 2019. See Note 8 to the Consolidated Financial Statements for the disclosures related to the adoption of this guidance.
|
ASU 2016-13, Measurement of Credit Losses on Financial Instruments (including subsequent amendments)
|
|
This guidance requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, resulting in the use of a current expected credit loss (“CECL”) model when measuring an impairment of financial instruments. Credit losses related to available-for-sale securities should be recorded in the consolidated income statement through an allowance for credit losses. Estimated credit losses utilizing the CECL model are based on historical experience, current conditions and forecasts that affect collectability. This ASU also modifies the impairment model for available-for-sale debt securities by eliminating the concept of “other than temporary” as well as providing a simplified accounting model for purchased financial assets with credit deterioration since their origination.
This guidance is effective for public entities for annual and interim periods beginning after December 15, 2019. Our early adoption of this guidance, including the subsequent amendments, in the first quarter of 2019 did not have a material impact on our Consolidated Financial Statements. |
Standard
|
|
Description
|
ASU 2018-09, Codification Improvements
|
|
This guidance makes minor improvements in various subtopics.
Some of the amendments within the ASU do not require transition and are effective upon issuance. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after December 15, 2018 for public entities. Our early adoption of this guidance in the first quarter of 2019 did not have a material impact on our Consolidated Financial Statements.
|
ASU 2019-04, Codification Improvements to Credit Losses on Financial Instruments; Derivatives and Hedging; and Financial Instruments
|
|
This guidance makes minor clarifications and minor improvements to certain aspects of accounting for credit losses, hedging activities and financial instruments.
This guidance is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. Our early adoption of this guidance on a modified-retrospective basis in the second quarter of 2019 did not have a material impact on our Consolidated Financial Statements.
|
Standard
|
|
Description
|
ASU 2018-13, Disclosure Framework - Change to the Disclosure Requirements for Fair Value Measurement
|
|
This guidance eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. It removes transfer disclosures between Level 1 and Level 2 of the fair value hierarchy, and adds disclosures for the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements.
This guidance will be effective for all entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted.
|
ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans
|
|
This guidance changes disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. It eliminates the requirement of certain disclosures that are no longer considered cost beneficial; however, it adds more pertinent disclosures.
This guidance will be effective for public entities for annual periods ending after December 15, 2020. Early adoption is permitted.
|
ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract
|
|
This guidance requires a customer in a hosted, cloud computing arrangement that is a service contract to follow the internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized costs are amortized over the term of the hosting arrangement when the recognized asset is ready for its intended use.
This guidance will be effective for public entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
||||||||
Polyethylene
|
$
|
1,509
|
|
|
$
|
1,830
|
|
|
$
|
4,713
|
|
|
$
|
5,765
|
|
Polypropylene
|
1,251
|
|
|
1,414
|
|
|
3,883
|
|
|
4,405
|
|
||||
Olefins and co-products
|
709
|
|
|
1,021
|
|
|
2,202
|
|
|
2,987
|
|
||||
Oxyfuels and related products
|
837
|
|
|
934
|
|
|
2,298
|
|
|
2,670
|
|
||||
Intermediate chemicals
|
655
|
|
|
905
|
|
|
2,000
|
|
|
2,756
|
|
||||
Propylene oxide and derivatives
|
481
|
|
|
603
|
|
|
1,498
|
|
|
1,828
|
|
||||
Compounding and solutions
|
991
|
|
|
797
|
|
|
3,193
|
|
|
1,990
|
|
||||
Advanced polymers
|
194
|
|
|
240
|
|
|
588
|
|
|
718
|
|
||||
Refined products
|
1,952
|
|
|
2,236
|
|
|
5,706
|
|
|
6,536
|
|
||||
Other
|
143
|
|
|
175
|
|
|
467
|
|
|
473
|
|
||||
Total
|
$
|
8,722
|
|
|
$
|
10,155
|
|
|
$
|
26,548
|
|
|
$
|
30,128
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
4,190
|
|
|
$
|
5,011
|
|
|
$
|
12,333
|
|
|
$
|
14,528
|
|
Germany
|
671
|
|
|
741
|
|
|
2,112
|
|
|
2,326
|
|
||||
Mexico
|
390
|
|
|
627
|
|
|
1,349
|
|
|
1,705
|
|
||||
Italy
|
361
|
|
|
376
|
|
|
1,133
|
|
|
1,203
|
|
||||
France
|
324
|
|
|
371
|
|
|
1,049
|
|
|
1,118
|
|
||||
China
|
299
|
|
|
289
|
|
|
895
|
|
|
850
|
|
||||
The Netherlands
|
226
|
|
|
259
|
|
|
748
|
|
|
835
|
|
||||
Japan
|
282
|
|
|
297
|
|
|
740
|
|
|
952
|
|
||||
Other
|
1,979
|
|
|
2,184
|
|
|
6,189
|
|
|
6,611
|
|
||||
Total
|
$
|
8,722
|
|
|
$
|
10,155
|
|
|
$
|
26,548
|
|
|
$
|
30,128
|
|
Millions of dollars
|
September 30,
2019 |
|
December 31,
2018 |
||||
Finished goods
|
$
|
3,008
|
|
|
$
|
3,066
|
|
Work-in-process
|
177
|
|
|
138
|
|
||
Raw materials and supplies
|
1,261
|
|
|
1,311
|
|
||
Total inventories
|
$
|
4,446
|
|
|
$
|
4,515
|
|
Millions of dollars
|
September 30,
2019 |
|
December 31,
2018 |
||||
Senior Notes due 2019, $1,000 million, 5.0%
|
$
|
—
|
|
|
$
|
988
|
|
Senior Notes due 2021, $1,000 million, 6.0% ($4 million of debt issuance cost)
|
999
|
|
|
975
|
|
||
Senior Notes due 2024, $1,000 million, 5.75% ($6 million of debt issuance cost)
|
994
|
|
|
993
|
|
||
Senior Notes due 2055, $1,000 million, 4.625% ($16 million of discount; $11 million of debt issuance cost)
|
973
|
|
|
973
|
|
||
Term Loan due 2020, $2,000 million
|
974
|
|
|
—
|
|
||
Term Loan due 2022, $4,000 million
|
—
|
|
|
—
|
|
||
Guaranteed Notes due 2022, €750 million, 1.875% ($1 million of discount; $2 million of debt issuance cost)
|
817
|
|
|
855
|
|
||
Guaranteed Notes due 2023, $750 million, 4.0% ($4 million of discount; $3 million of debt issuance cost)
|
743
|
|
|
742
|
|
||
Guaranteed Notes due 2026, €500 million, 0.875% ($2 million of discount; $4 million of debt issuance cost)
|
539
|
|
|
—
|
|
||
Guaranteed Notes due 2027, $1,000 million, 3.5% ($8 million of discount; $6 million of debt issuance cost)
|
1,043
|
|
|
964
|
|
||
Guaranteed Notes due 2027, $300 million, 8.1%
|
300
|
|
|
300
|
|
||
Guaranteed Notes due 2031, €500 million, 1.625% ($6 million of discount; $3 million of debt issuance cost)
|
536
|
|
|
—
|
|
||
Guaranteed Notes due 2043, $750 million, 5.25% ($20 million of discount; $7 million of debt issuance cost)
|
723
|
|
|
722
|
|
||
Guaranteed Notes due 2044, $1,000 million, 4.875% ($11 million of discount; $9 million of debt issuance cost)
|
980
|
|
|
980
|
|
||
Other
|
11
|
|
|
10
|
|
||
Total
|
9,632
|
|
|
8,502
|
|
||
Less current maturities
|
(4
|
)
|
|
(5
|
)
|
||
Long-term debt
|
$
|
9,628
|
|
|
$
|
8,497
|
|
|
|
|
Gains (Losses)
|
|
Cumulative Fair Value
Hedging Adjustments Included
in Carrying Amount of Debt
|
||||||||||||||||||||
|
Inception
Year
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
September 30,
|
|
December 31,
|
||||||||||||||||
Millions of dollars
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||||||
Senior Notes due 2019, 5.0%
|
2014
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
|
$
|
(11
|
)
|
|
$
|
(16
|
)
|
|
$
|
—
|
|
|
$
|
11
|
|
Senior Notes due 2021, 6.0%
|
2016
|
|
(3
|
)
|
|
2
|
|
|
(23
|
)
|
|
22
|
|
|
(3
|
)
|
|
20
|
|
||||||
Guaranteed Notes due 2027, 3.5%
|
2017
|
|
(21
|
)
|
|
12
|
|
|
(78
|
)
|
|
54
|
|
|
(57
|
)
|
|
21
|
|
||||||
Guaranteed Notes due 2022, 1.875%
|
2018
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
||||||
Total
|
|
|
$
|
(24
|
)
|
|
$
|
8
|
|
|
$
|
(113
|
)
|
|
$
|
60
|
|
|
$
|
(62
|
)
|
|
$
|
51
|
|
Millions of dollars
|
September 30,
2019 |
|
December 31,
2018 |
||||
Term Loan due 2020, $2,000 million
|
$
|
1,026
|
|
|
$
|
—
|
|
Senior Revolving Credit Facility, $2,500 million
|
—
|
|
|
—
|
|
||
U.S. Receivables Facility, $900 million
|
500
|
|
|
—
|
|
||
Commercial paper
|
786
|
|
|
809
|
|
||
Precious metal financings
|
124
|
|
|
71
|
|
||
Other
|
2
|
|
|
5
|
|
||
Total short-term debt
|
$
|
2,438
|
|
|
$
|
885
|
|
Millions of dollars
|
|
|
||
Last three months of 2019
|
|
$
|
88
|
|
2020
|
|
317
|
|
|
2021
|
|
267
|
|
|
2022
|
|
226
|
|
|
2023
|
|
197
|
|
|
Thereafter
|
|
701
|
|
|
Total lease payments
|
|
1,796
|
|
|
Less: Imputed interest
|
|
(265
|
)
|
|
Present value of lease liabilities
|
|
$
|
1,531
|
|
Millions of dollars
|
|
Three Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2019 |
||||
Operating lease cost
|
|
$
|
90
|
|
|
$
|
270
|
|
Short-term lease cost
|
|
41
|
|
|
114
|
|
||
Variable lease cost
|
|
12
|
|
|
48
|
|
||
Net operating lease cost
|
|
$
|
143
|
|
|
$
|
432
|
|
Millions of dollars
|
|
|
||
2019
|
|
$
|
365
|
|
2020
|
|
288
|
|
|
2021
|
|
256
|
|
|
2022
|
|
236
|
|
|
2023
|
|
204
|
|
|
Thereafter
|
|
1,126
|
|
|
Total minimum lease payments
|
|
$
|
2,475
|
|
|
September 30, 2019
|
|
December 31, 2018
|
|
|
||||||||||||
Millions of dollars
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
|
Balance Sheet Classification
|
||||||||
Assets–
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
472
|
|
|
$
|
12
|
|
|
Prepaid expenses and other current assets
|
Foreign currency
|
—
|
|
|
52
|
|
|
—
|
|
|
27
|
|
|
Prepaid expenses and other current assets
|
||||
Foreign currency
|
2,000
|
|
|
261
|
|
|
2,000
|
|
|
117
|
|
|
Other assets
|
||||
Interest rates
|
—
|
|
|
27
|
|
|
600
|
|
|
33
|
|
|
Prepaid expenses and other current assets
|
||||
Interest rates
|
2,136
|
|
|
62
|
|
|
143
|
|
|
1
|
|
|
Other assets
|
||||
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodities
|
53
|
|
|
3
|
|
|
35
|
|
|
5
|
|
|
Prepaid expenses and other current assets
|
||||
Foreign currency
|
91
|
|
|
—
|
|
|
599
|
|
|
3
|
|
|
Prepaid expenses and other current assets
|
||||
Non-derivatives:
|
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
53
|
|
|
53
|
|
|
567
|
|
|
567
|
|
|
Short-term investments
|
||||
Equity securities
|
—
|
|
|
—
|
|
|
322
|
|
|
325
|
|
|
Short-term investments
|
||||
Total
|
$
|
4,333
|
|
|
$
|
458
|
|
|
$
|
4,738
|
|
|
$
|
1,090
|
|
|
|
Liabilities–
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
Accrued liabilities
|
Foreign currency
|
—
|
|
|
32
|
|
|
—
|
|
|
17
|
|
|
Accrued liabilities
|
||||
Foreign currency
|
950
|
|
|
28
|
|
|
950
|
|
|
75
|
|
|
Other liabilities
|
||||
Interest rates
|
1,000
|
|
|
232
|
|
|
1,400
|
|
|
16
|
|
|
Accrued liabilities
|
||||
Interest rates
|
500
|
|
|
117
|
|
|
2,500
|
|
|
45
|
|
|
Other liabilities
|
||||
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodities
|
192
|
|
|
19
|
|
|
63
|
|
|
14
|
|
|
Accrued liabilities
|
||||
Foreign currency
|
75
|
|
|
—
|
|
|
1,165
|
|
|
7
|
|
|
Accrued liabilities
|
||||
Non-derivatives:
|
|
|
|
|
|
|
|
|
|
||||||||
Performance share units
|
—
|
|
|
—
|
|
|
29
|
|
|
29
|
|
|
Accrued liabilities
|
||||
Total
|
$
|
2,717
|
|
|
$
|
428
|
|
|
$
|
6,111
|
|
|
$
|
203
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
Millions of dollars
|
Carrying Value
|
|
Fair
Value
|
|
Carrying Value
|
|
Fair
Value
|
||||||||
Non-derivatives:
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Short-term loans receivable
|
$
|
518
|
|
|
$
|
518
|
|
|
$
|
544
|
|
|
$
|
544
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Short-term debt
|
$
|
1,650
|
|
|
$
|
1,667
|
|
|
$
|
71
|
|
|
$
|
77
|
|
Long-term debt
|
9,621
|
|
|
10,309
|
|
|
8,492
|
|
|
8,476
|
|
||||
Total
|
$
|
11,271
|
|
|
$
|
11,976
|
|
|
$
|
8,563
|
|
|
$
|
8,553
|
|
|
September 30, 2019
|
|
December 31, 2018
|
|
|
||||
Millions of dollars
|
Notional Value
|
|
Notional Value
|
|
Expiration Date
|
||||
Foreign currency
|
$
|
2,300
|
|
|
$
|
2,300
|
|
|
2021 to 2027
|
Interest rates
|
1,500
|
|
|
1,500
|
|
|
2020 to 2021
|
||
Commodities
|
—
|
|
|
476
|
|
|
2019
|
|
Effects of Financial Instruments
|
||||||||||||||||||||||||
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
|
Gain (Loss) Recognized in AOCI
|
|
Gain (Loss) Reclassified from AOCI to Income
|
|
Gain (Loss) Recognized in Income
|
|
Income Statement
|
||||||||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Classification
|
||||||||||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodities
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Sales and other operating revenues
|
Commodities
|
(10
|
)
|
|
30
|
|
|
8
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
Cost of sales
|
||||||
Foreign currency
|
141
|
|
|
15
|
|
|
(86
|
)
|
|
(13
|
)
|
|
18
|
|
|
19
|
|
|
Other income, net; Interest expense
|
||||||
Interest rates
|
(163
|
)
|
|
48
|
|
|
(1
|
)
|
|
—
|
|
|
23
|
|
|
(12
|
)
|
|
Interest expense
|
||||||
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
2
|
|
|
Sales and other operating revenues
|
||||||
Commodities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
7
|
|
|
Cost of sales
|
||||||
Foreign currency
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
12
|
|
|
Other income, net
|
||||||
Non-derivatives designated as hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
35
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other income, net
|
||||||
Total
|
$
|
10
|
|
|
$
|
98
|
|
|
$
|
(89
|
)
|
|
$
|
(24
|
)
|
|
$
|
55
|
|
|
$
|
28
|
|
|
|
|
Effects of Financial Instruments
|
||||||||||||||||||||||||
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
Gain (Loss) Recognized in AOCI
|
|
Gain (Loss) Reclassified from AOCI to Income
|
|
Gain (Loss) Recognized in Income
|
|
Income Statement
|
||||||||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Classification
|
||||||||||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodities
|
$
|
(34
|
)
|
|
$
|
—
|
|
|
$
|
(18
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Sales and other operating revenues
|
Commodities
|
28
|
|
|
36
|
|
|
12
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
Cost of sales
|
||||||
Foreign currency
|
192
|
|
|
102
|
|
|
(99
|
)
|
|
(75
|
)
|
|
50
|
|
|
50
|
|
|
Other income, net; Interest expense
|
||||||
Interest rates
|
(342
|
)
|
|
115
|
|
|
(5
|
)
|
|
—
|
|
|
96
|
|
|
(74
|
)
|
|
Interest expense
|
||||||
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
Sales and other operating revenues
|
||||||
Commodities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
16
|
|
|
Cost of sales
|
||||||
Foreign currency
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
28
|
|
|
Other income, net
|
||||||
Non-derivatives designated as hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
40
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other income, net
|
||||||
Total
|
$
|
(116
|
)
|
|
$
|
284
|
|
|
$
|
(110
|
)
|
|
$
|
(82
|
)
|
|
$
|
160
|
|
|
$
|
21
|
|
|
|
|
September 30, 2019
|
||||||||||||||
Millions of dollars
|
Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
||||||||
Bonds
|
$
|
52
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
53
|
|
|
December 31, 2018
|
||||||||||||||
Millions of dollars
|
Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
||||||||
Bonds
|
$
|
567
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
567
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Proceeds from maturities of available-for-sale debt securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
331
|
|
|
$
|
410
|
|
Proceeds from sales of available-for-sale debt securities
|
—
|
|
|
—
|
|
|
180
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
||||||||||||||
|
Less than 12 months
|
|
Greater than 12 months
|
||||||||||||
Millions of dollars
|
Fair Value
|
|
Unrealized Loss
|
|
Fair Value
|
|
Unrealized Loss
|
||||||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
||||||||
Bonds
|
$
|
118
|
|
|
$
|
(1
|
)
|
|
$
|
45
|
|
|
$
|
—
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net gains (losses) recognized during the period
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
6
|
|
|
$
|
1
|
|
Less: Net gains recognized during the period on securities sold
|
—
|
|
|
1
|
|
|
9
|
|
|
2
|
|
||||
Unrealized losses recognized during the period
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
(3
|
)
|
|
$
|
(1
|
)
|
|
|
|
|
Millions of dollars, except per share amounts
|
Dividend Per Ordinary Share
|
|
Aggregate Dividends Paid
|
|
Date of Record
|
||||
March
|
$
|
1.00
|
|
|
$
|
372
|
|
|
March 4, 2019
|
June
|
1.05
|
|
|
388
|
|
|
June 10, 2019
|
||
September
|
1.05
|
|
|
351
|
|
|
September 4, 2019
|
||
|
$
|
3.10
|
|
|
$
|
1,111
|
|
|
|
|
Nine Months Ended September 30, 2019
|
|||||||||
Millions of dollars, except shares and per share amounts
|
Shares
Repurchased
|
|
Average
Purchase
Price
|
|
Total Purchase Price, Including
Commissions and Fees
|
|||||
June 2018 Share Repurchase Authorization
|
5,648,900
|
|
|
$
|
86.38
|
|
|
$
|
488
|
|
May 2019 Share Repurchase Authorization
|
37,032,594
|
|
|
87.50
|
|
|
3,240
|
|
||
|
42,681,494
|
|
|
$
|
87.35
|
|
|
$
|
3,728
|
|
|
Nine Months Ended September 30, 2018
|
|||||||||
Millions of dollars, except shares and per share amounts
|
Shares
Repurchased
|
|
Average
Purchase
Price
|
|
Total Purchase Price, Including
Commissions and Fees
|
|||||
May 2017 Share Repurchase Authorization
|
4,004,753
|
|
|
$
|
106.05
|
|
|
$
|
425
|
|
June 2018 Share Repurchase Authorization
|
3,674,062
|
|
|
107.89
|
|
|
396
|
|
||
|
7,678,815
|
|
|
$
|
106.93
|
|
|
$
|
821
|
|
|
Nine Months Ended
September 30, |
||||
|
2019
|
|
2018
|
||
Ordinary shares outstanding:
|
|
|
|
||
Beginning balance
|
375,696,661
|
|
|
394,512,054
|
|
Share-based compensation
|
268,851
|
|
|
285,186
|
|
Employee stock purchase plan
|
123,869
|
|
|
82,758
|
|
Purchase of ordinary shares
|
(42,681,505
|
)
|
|
(7,702,222
|
)
|
Ending balance
|
333,407,876
|
|
|
387,177,776
|
|
|
Nine Months Ended
September 30, |
||||
|
2019
|
|
2018
|
||
Ordinary shares held as treasury shares:
|
|
|
|
||
Beginning balance
|
24,513,619
|
|
|
183,928,109
|
|
Share-based compensation
|
(268,851
|
)
|
|
(285,186
|
)
|
Employee stock purchase plan
|
(123,869
|
)
|
|
(82,758
|
)
|
Purchase of ordinary shares
|
42,681,505
|
|
|
7,702,222
|
|
Treasury shares canceled
|
—
|
|
|
(178,229,883
|
)
|
Ending balance
|
66,802,404
|
|
|
13,032,504
|
|
Millions of dollars
|
Financial
Derivatives
|
|
Unrealized
Gains
on Available
-for-Sale
Debt
Securities
|
|
Defined Benefit
Pension and Other
Postretirement
Benefit Plans
|
|
Foreign
Currency
Translation
Adjustments
|
|
Total
|
||||||||||
Balance – January 1, 2019
|
$
|
(68
|
)
|
|
$
|
—
|
|
|
$
|
(442
|
)
|
|
$
|
(853
|
)
|
|
$
|
(1,363
|
)
|
Other comprehensive income (loss) before reclassifications
|
(184
|
)
|
|
1
|
|
|
—
|
|
|
(92
|
)
|
|
(275
|
)
|
|||||
Tax (expense) benefit before reclassifications
|
36
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
22
|
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
(110
|
)
|
|
—
|
|
|
20
|
|
|
—
|
|
|
(90
|
)
|
|||||
Tax (expense) benefit
|
28
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
23
|
|
|||||
Net other comprehensive income (loss)
|
(230
|
)
|
|
1
|
|
|
15
|
|
|
(106
|
)
|
|
(320
|
)
|
|||||
Balance – September 30, 2019
|
$
|
(298
|
)
|
|
$
|
1
|
|
|
$
|
(427
|
)
|
|
$
|
(959
|
)
|
|
$
|
(1,683
|
)
|
Millions of dollars
|
Financial
Derivatives
|
|
Unrealized
Gains on Equity Securities and Equity Securities Held by Equity Investees |
|
Defined Benefit
Pension and Other
Postretirement
Benefit Plans
|
|
Foreign
Currency
Translation
Adjustments
|
|
Total
|
||||||||||
Balance – January 1, 2018
|
$
|
(120
|
)
|
|
$
|
17
|
|
|
$
|
(421
|
)
|
|
$
|
(761
|
)
|
|
$
|
(1,285
|
)
|
Adoption of accounting standards
|
(2
|
)
|
|
(17
|
)
|
|
(51
|
)
|
|
—
|
|
|
(70
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
186
|
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
|
138
|
|
|||||
Tax expense before reclassifications
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(51
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
(81
|
)
|
|
—
|
|
|
26
|
|
|
—
|
|
|
(55
|
)
|
|||||
Tax (expense) benefit
|
20
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
14
|
|
|||||
Net other comprehensive income (loss)
|
89
|
|
|
—
|
|
|
20
|
|
|
(63
|
)
|
|
46
|
|
|||||
Balance – September 30, 2018
|
$
|
(33
|
)
|
|
$
|
—
|
|
|
$
|
(452
|
)
|
|
$
|
(824
|
)
|
|
$
|
(1,309
|
)
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
Affected Line Item on
the Consolidated
Statements of Income
|
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|||||||||
Reclassification adjustments for:
|
|
|
|
|
|
|
|
|
|
||||||||
Financial derivatives:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
$
|
(86
|
)
|
|
$
|
(13
|
)
|
|
$
|
(99
|
)
|
|
$
|
(75
|
)
|
|
Other income, net
|
Commodities
|
(10
|
)
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
Sales and other operating revenue
|
||||
Commodities
|
8
|
|
|
(10
|
)
|
|
12
|
|
|
(6
|
)
|
|
Cost of sales
|
||||
Interest rates
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
Interest expense
|
||||
Income tax expense (benefit)
|
(25
|
)
|
|
(5
|
)
|
|
(28
|
)
|
|
(20
|
)
|
|
Provision for income taxes
|
||||
Financial derivatives, net of tax
|
(64
|
)
|
|
(18
|
)
|
|
(82
|
)
|
|
(61
|
)
|
|
|
||||
Amortization of defined pension items:
|
|
|
|
|
|
|
|
|
|
||||||||
Prior service cost
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
Other income, net
|
||||
Actuarial loss
|
6
|
|
|
9
|
|
|
19
|
|
|
25
|
|
|
Other income, net
|
||||
Settlement loss
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Other income, net
|
||||
Income tax expense
|
1
|
|
|
3
|
|
|
5
|
|
|
6
|
|
|
Provision for income taxes
|
||||
Defined pension items, net of tax
|
5
|
|
|
6
|
|
|
15
|
|
|
20
|
|
|
|
||||
Total reclassifications, before tax
|
(83
|
)
|
|
(14
|
)
|
|
(90
|
)
|
|
(55
|
)
|
|
|
||||
Income tax expense (benefit)
|
(24
|
)
|
|
(2
|
)
|
|
(23
|
)
|
|
(14
|
)
|
|
Provision for income taxes
|
||||
Total reclassifications, after tax
|
$
|
(59
|
)
|
|
$
|
(12
|
)
|
|
$
|
(67
|
)
|
|
$
|
(41
|
)
|
|
Amount included in net income
|
|
Three Months Ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
Millions of dollars
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
||||||||
Net income (loss)
|
$
|
969
|
|
|
$
|
(4
|
)
|
|
$
|
1,115
|
|
|
$
|
(2
|
)
|
Dividends on A. Schulman Special Stock
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income attributable to participating securities
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Net income (loss) attributable to ordinary shareholders – basic and diluted
|
$
|
965
|
|
|
$
|
(4
|
)
|
|
$
|
1,113
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
|
|
||||||||
Millions of shares, except per share amounts
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common stock outstanding
|
337
|
|
|
337
|
|
|
389
|
|
|
389
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Performance share units
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Potential dilutive shares
|
337
|
|
|
337
|
|
|
390
|
|
|
390
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
2.86
|
|
|
$
|
(0.01
|
)
|
|
$
|
2.86
|
|
|
$
|
—
|
|
Diluted
|
$
|
2.86
|
|
|
$
|
(0.01
|
)
|
|
$
|
2.85
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Participating securities
|
0.6
|
|
|
0.6
|
|
|
0.5
|
|
|
0.5
|
|
||||
Dividends declared per share of common stock
|
$
|
1.05
|
|
|
$
|
—
|
|
|
$
|
1.00
|
|
|
$
|
—
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
Millions of dollars
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
||||||||
Net income (loss)
|
$
|
2,792
|
|
|
$
|
(7
|
)
|
|
$
|
4,001
|
|
|
$
|
(3
|
)
|
Dividends on A. Schulman Special Stock
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income attributable to participating securities
|
(5
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||
Net income (loss) attributable to ordinary shareholders – basic and diluted
|
$
|
2,782
|
|
|
$
|
(7
|
)
|
|
$
|
3,997
|
|
|
$
|
(3
|
)
|
|
|
|
|
|
|
|
|
||||||||
Millions of shares, except per share amounts
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common stock outstanding
|
360
|
|
|
360
|
|
|
391
|
|
|
391
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Performance share units
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Potential dilutive shares
|
360
|
|
|
360
|
|
|
392
|
|
|
392
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
7.74
|
|
|
$
|
(0.02
|
)
|
|
$
|
10.21
|
|
|
$
|
(0.01
|
)
|
Diluted
|
$
|
7.74
|
|
|
$
|
(0.02
|
)
|
|
$
|
10.19
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
||||||||
Participating securities
|
0.6
|
|
|
0.6
|
|
|
0.5
|
|
|
0.5
|
|
||||
Dividends declared per share of common stock
|
$
|
3.10
|
|
|
$
|
—
|
|
|
$
|
3.00
|
|
|
$
|
—
|
|
•
|
Olefins and Polyolefins–Americas (“O&P–Americas”). Our O&P–Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.
|
•
|
Olefins and Polyolefins–Europe, Asia, International (“O&P–EAI”). Our O&P–EAI segment produces and markets olefins and co-products, polyethylene, and polypropylene.
|
•
|
Intermediates and Derivatives (“I&D”). Our I&D segment produces and markets propylene oxide and its derivatives; oxyfuels and related products; and intermediate chemicals such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
|
•
|
Advanced Polymer Solutions (“APS”). Our APS segment produces and markets compounding and solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders, and advanced polymers, which includes Catalloy and polybutene-1.
|
•
|
Refining. Our Refining segment refines heavy, high-sulfur crude oils and other crude oils of varied types and sources available on the U.S. Gulf Coast into refined products, including gasoline and distillates.
|
•
|
Technology. Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||||||||||
Millions of dollars
|
O&P–
Americas |
|
O&P–
EAI |
|
I&D
|
|
APS
|
|
Refining
|
|
Technology
|
|
Other
|
|
Total
|
||||||||||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Customers
|
$
|
1,337
|
|
|
$
|
2,138
|
|
|
$
|
1,988
|
|
|
$
|
1,186
|
|
|
$
|
1,952
|
|
|
$
|
121
|
|
|
$
|
—
|
|
|
$
|
8,722
|
|
Intersegment
|
800
|
|
|
171
|
|
|
58
|
|
|
—
|
|
|
182
|
|
|
25
|
|
|
(1,236
|
)
|
|
—
|
|
||||||||
|
2,137
|
|
|
2,309
|
|
|
2,046
|
|
|
1,186
|
|
|
2,134
|
|
|
146
|
|
|
(1,236
|
)
|
|
8,722
|
|
||||||||
Income from equity investments
|
12
|
|
|
36
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
||||||||
EBITDA
|
653
|
|
|
291
|
|
|
390
|
|
|
102
|
|
|
(6
|
)
|
|
83
|
|
|
—
|
|
|
1,513
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||||||||||
Millions of dollars
|
O&P–
Americas |
|
O&P–
EAI |
|
I&D
|
|
APS
|
|
Refining
|
|
Technology
|
|
Other
|
|
Total
|
||||||||||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Customers
|
$
|
1,843
|
|
|
$
|
2,434
|
|
|
$
|
2,463
|
|
|
$
|
1,038
|
|
|
$
|
2,236
|
|
|
$
|
141
|
|
|
$
|
—
|
|
|
$
|
10,155
|
|
Intersegment
|
927
|
|
|
209
|
|
|
46
|
|
|
1
|
|
|
263
|
|
|
30
|
|
|
(1,476
|
)
|
|
—
|
|
||||||||
|
2,770
|
|
|
2,643
|
|
|
2,509
|
|
|
1,039
|
|
|
2,499
|
|
|
171
|
|
|
(1,476
|
)
|
|
10,155
|
|
||||||||
Income from equity investments
|
18
|
|
|
69
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89
|
|
||||||||
EBITDA
|
704
|
|
|
262
|
|
|
504
|
|
|
70
|
|
|
84
|
|
|
98
|
|
|
10
|
|
|
1,732
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||||||
Millions of dollars
|
O&P–
Americas
|
|
O&P–
EAI
|
|
I&D
|
|
APS
|
|
Refining
|
|
Technology
|
|
Other
|
|
Total
|
||||||||||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Customers
|
$
|
4,055
|
|
|
$
|
6,764
|
|
|
$
|
5,860
|
|
|
$
|
3,781
|
|
|
$
|
5,706
|
|
|
$
|
382
|
|
|
$
|
—
|
|
|
$
|
26,548
|
|
Intersegment
|
2,307
|
|
|
585
|
|
|
142
|
|
|
2
|
|
|
490
|
|
|
78
|
|
|
(3,604
|
)
|
|
—
|
|
||||||||
|
6,362
|
|
|
7,349
|
|
|
6,002
|
|
|
3,783
|
|
|
6,196
|
|
|
460
|
|
|
(3,604
|
)
|
|
26,548
|
|
||||||||
Income from equity investments
|
35
|
|
|
139
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
179
|
|
||||||||
EBITDA
|
1,804
|
|
|
918
|
|
|
1,228
|
|
|
370
|
|
|
(87
|
)
|
|
273
|
|
|
14
|
|
|
4,520
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||||
Millions of dollars
|
O&P–
Americas
|
|
O&P–
EAI
|
|
I&D
|
|
APS
|
|
Refining
|
|
Technology
|
|
Other
|
|
Total
|
||||||||||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Customers
|
$
|
5,324
|
|
|
$
|
7,866
|
|
|
$
|
7,314
|
|
|
$
|
2,709
|
|
|
$
|
6,536
|
|
|
$
|
379
|
|
|
$
|
—
|
|
|
$
|
30,128
|
|
Intersegment
|
2,634
|
|
|
637
|
|
|
122
|
|
|
1
|
|
|
789
|
|
|
89
|
|
|
(4,272
|
)
|
|
—
|
|
||||||||
|
7,958
|
|
|
8,503
|
|
|
7,436
|
|
|
2,710
|
|
|
7,325
|
|
|
468
|
|
|
(4,272
|
)
|
|
30,128
|
|
||||||||
Income from equity investments
|
50
|
|
|
199
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
253
|
|
||||||||
EBITDA
|
2,131
|
|
|
1,036
|
|
|
1,632
|
|
|
314
|
|
|
251
|
|
|
267
|
|
|
24
|
|
|
5,655
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
EBITDA:
|
|
|
|
|
|
|
|
||||||||
Total segment EBITDA
|
$
|
1,513
|
|
|
$
|
1,722
|
|
|
$
|
4,506
|
|
|
$
|
5,631
|
|
Other EBITDA
|
—
|
|
|
10
|
|
|
14
|
|
|
24
|
|
||||
Less:
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense
|
(327
|
)
|
|
(309
|
)
|
|
(977
|
)
|
|
(908
|
)
|
||||
Interest expense
|
(86
|
)
|
|
(90
|
)
|
|
(259
|
)
|
|
(272
|
)
|
||||
Add:
|
|
|
|
|
|
|
|
||||||||
Interest income
|
5
|
|
|
14
|
|
|
16
|
|
|
40
|
|
||||
Income from continuing operations before income taxes
|
$
|
1,105
|
|
|
$
|
1,347
|
|
|
$
|
3,300
|
|
|
$
|
4,515
|
|
•
|
Lower O&P–Americas results due to a decline in polyethylene margins while olefins margins improved;
|
•
|
O&P–EAI results benefited from improved olefin margins in the third quarter and first nine months of 2019, offset by lower equity income and unfavorable foreign exchange impacts;
|
•
|
I&D segment results declined due to margin and volume decreases primarily driven by intermediate chemicals; and
|
•
|
Lower Refining segment results due to a decline in refining margins.
|
•
|
Executed a $2,000 million senior unsecured term loan facility due 2020 and borrowed the full amount;
|
•
|
Redeemed $1,000 million of our 5% senior notes due 2019;
|
•
|
Executed a three-year, $4,000 million senior unsecured delayed draw term loan credit facility;
|
•
|
Completed a tender offer to repurchase 35.1 million ordinary shares for a total of $3,099 million, at a price of $88.00 per share;
|
•
|
Issued €1,000 million of long-term guaranteed notes used to refinance $1,000 million of long-term debt and repay a portion of our outstanding short-term debt; and
|
•
|
During October 2019, issued $1,000 million of long-term guaranteed notes used to repay our indebtedness outstanding under our Term Loan due 2020.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues
|
$
|
8,722
|
|
|
$
|
10,155
|
|
|
$
|
26,548
|
|
|
$
|
30,128
|
|
Cost of sales
|
7,269
|
|
|
8,499
|
|
|
22,257
|
|
|
24,801
|
|
||||
Selling, general and administrative expenses
|
303
|
|
|
309
|
|
|
892
|
|
|
803
|
|
||||
Research and development expenses
|
26
|
|
|
30
|
|
|
81
|
|
|
87
|
|
||||
Operating income
|
1,124
|
|
|
1,317
|
|
|
3,318
|
|
|
4,437
|
|
||||
Interest expense
|
(86
|
)
|
|
(90
|
)
|
|
(259
|
)
|
|
(272
|
)
|
||||
Interest income
|
5
|
|
|
14
|
|
|
16
|
|
|
40
|
|
||||
Other income, net
|
11
|
|
|
17
|
|
|
46
|
|
|
57
|
|
||||
Income from equity investments
|
51
|
|
|
89
|
|
|
179
|
|
|
253
|
|
||||
Provision for income taxes
|
136
|
|
|
232
|
|
|
508
|
|
|
514
|
|
||||
Income from continuing operations
|
969
|
|
|
1,115
|
|
|
2,792
|
|
|
4,001
|
|
||||
Loss from discontinued operations, net of tax
|
(4
|
)
|
|
(2
|
)
|
|
(7
|
)
|
|
(3
|
)
|
||||
Net income
|
$
|
965
|
|
|
$
|
1,113
|
|
|
$
|
2,785
|
|
|
$
|
3,998
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
||||||||
O&P–Americas segment
|
$
|
2,137
|
|
|
$
|
2,770
|
|
|
$
|
6,362
|
|
|
$
|
7,958
|
|
O&P–EAI segment
|
2,309
|
|
|
2,643
|
|
|
7,349
|
|
|
8,503
|
|
||||
I&D segment
|
2,046
|
|
|
2,509
|
|
|
6,002
|
|
|
7,436
|
|
||||
APS segment
|
1,186
|
|
|
1,039
|
|
|
3,783
|
|
|
2,710
|
|
||||
Refining segment
|
2,134
|
|
|
2,499
|
|
|
6,196
|
|
|
7,325
|
|
||||
Technology segment
|
146
|
|
|
171
|
|
|
460
|
|
|
468
|
|
||||
Other, including intersegment eliminations
|
(1,236
|
)
|
|
(1,476
|
)
|
|
(3,604
|
)
|
|
(4,272
|
)
|
||||
Total
|
$
|
8,722
|
|
|
$
|
10,155
|
|
|
$
|
26,548
|
|
|
$
|
30,128
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
||||||||
O&P–Americas segment
|
$
|
524
|
|
|
$
|
572
|
|
|
$
|
1,412
|
|
|
$
|
1,744
|
|
O&P–EAI segment
|
202
|
|
|
141
|
|
|
614
|
|
|
667
|
|
||||
I&D segment
|
314
|
|
|
431
|
|
|
1,000
|
|
|
1,408
|
|
||||
APS segment
|
67
|
|
|
48
|
|
|
277
|
|
|
274
|
|
||||
Refining segment
|
(52
|
)
|
|
38
|
|
|
(221
|
)
|
|
111
|
|
||||
Technology segment
|
73
|
|
|
88
|
|
|
242
|
|
|
234
|
|
||||
Other, including intersegment eliminations
|
(4
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|
(1
|
)
|
||||
Total
|
$
|
1,124
|
|
|
$
|
1,317
|
|
|
$
|
3,318
|
|
|
$
|
4,437
|
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
||||||||
O&P–Americas segment
|
$
|
118
|
|
|
$
|
111
|
|
|
$
|
350
|
|
|
$
|
326
|
|
O&P–EAI segment
|
51
|
|
|
50
|
|
|
156
|
|
|
158
|
|
||||
I&D segment
|
75
|
|
|
71
|
|
|
221
|
|
|
216
|
|
||||
APS segment
|
32
|
|
|
22
|
|
|
91
|
|
|
39
|
|
||||
Refining segment
|
41
|
|
|
45
|
|
|
128
|
|
|
137
|
|
||||
Technology segment
|
10
|
|
|
10
|
|
|
31
|
|
|
32
|
|
||||
Total
|
$
|
327
|
|
|
$
|
309
|
|
|
$
|
977
|
|
|
$
|
908
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Income from equity investments:
|
|
|
|
|
|
|
|
||||||||
O&P–Americas segment
|
$
|
12
|
|
|
$
|
18
|
|
|
$
|
35
|
|
|
$
|
50
|
|
O&P–EAI segment
|
36
|
|
|
69
|
|
|
139
|
|
|
199
|
|
||||
I&D segment
|
1
|
|
|
2
|
|
|
5
|
|
|
4
|
|
||||
APS segment
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
51
|
|
|
$
|
89
|
|
|
$
|
179
|
|
|
$
|
253
|
|
Other income (loss), net:
|
|
|
|
|
|
|
|
||||||||
O&P–Americas segment
|
$
|
(1
|
)
|
|
$
|
3
|
|
|
$
|
7
|
|
|
$
|
11
|
|
O&P–EAI segment
|
2
|
|
|
2
|
|
|
9
|
|
|
12
|
|
||||
I&D segment
|
—
|
|
|
—
|
|
|
2
|
|
|
4
|
|
||||
APS segment
|
1
|
|
|
—
|
|
|
2
|
|
|
1
|
|
||||
Refining segment
|
5
|
|
|
1
|
|
|
6
|
|
|
3
|
|
||||
Technology segment
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Other, including intersegment eliminations
|
4
|
|
|
11
|
|
|
20
|
|
|
25
|
|
||||
Total
|
$
|
11
|
|
|
$
|
17
|
|
|
$
|
46
|
|
|
$
|
57
|
|
EBITDA:
|
|
|
|
|
|
|
|
||||||||
O&P–Americas segment
|
$
|
653
|
|
|
$
|
704
|
|
|
$
|
1,804
|
|
|
$
|
2,131
|
|
O&P–EAI segment
|
291
|
|
|
262
|
|
|
918
|
|
|
1,036
|
|
||||
I&D segment
|
390
|
|
|
504
|
|
|
1,228
|
|
|
1,632
|
|
||||
APS segment
|
102
|
|
|
70
|
|
|
370
|
|
|
314
|
|
||||
Refining segment
|
(6
|
)
|
|
84
|
|
|
(87
|
)
|
|
251
|
|
||||
Technology segment
|
83
|
|
|
98
|
|
|
273
|
|
|
267
|
|
||||
Other, including intersegment eliminations
|
—
|
|
|
10
|
|
|
14
|
|
|
24
|
|
||||
Total
|
$
|
1,513
|
|
|
$
|
1,732
|
|
|
$
|
4,520
|
|
|
$
|
5,655
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues
|
$
|
2,137
|
|
|
$
|
2,770
|
|
|
$
|
6,362
|
|
|
$
|
7,958
|
|
Income from equity investments
|
12
|
|
|
18
|
|
|
35
|
|
|
50
|
|
||||
EBITDA
|
653
|
|
|
704
|
|
|
1,804
|
|
|
2,131
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues
|
$
|
2,309
|
|
|
$
|
2,643
|
|
|
$
|
7,349
|
|
|
$
|
8,503
|
|
Income from equity investments
|
36
|
|
|
69
|
|
|
139
|
|
|
199
|
|
||||
EBITDA
|
291
|
|
|
262
|
|
|
918
|
|
|
1,036
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended September 30,
|
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues
|
$
|
2,046
|
|
|
$
|
2,509
|
|
|
$
|
6,002
|
|
|
$
|
7,436
|
|
Income from equity investments
|
1
|
|
|
2
|
|
|
5
|
|
|
4
|
|
||||
EBITDA
|
390
|
|
|
504
|
|
|
1,228
|
|
|
1,632
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues
|
$
|
1,186
|
|
|
$
|
1,039
|
|
|
$
|
3,783
|
|
|
$
|
2,710
|
|
Income from equity investments
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
EBITDA
|
102
|
|
|
70
|
|
|
370
|
|
|
314
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues
|
$
|
2,134
|
|
|
$
|
2,499
|
|
|
$
|
6,196
|
|
|
$
|
7,325
|
|
EBITDA
|
(6
|
)
|
|
84
|
|
|
(87
|
)
|
|
251
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Heavy crude oil processing rates, thousands of barrels per day
|
264
|
|
|
232
|
|
|
261
|
|
|
248
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Market margins, dollars per barrel
|
|
|
|
|
|
|
|
||||||||
Light crude oil – 2-1-1
|
$
|
14.11
|
|
|
$
|
13.15
|
|
|
$
|
12.73
|
|
|
$
|
13.60
|
|
Light crude – Maya differential
|
4.02
|
|
|
8.28
|
|
|
4.16
|
|
|
9.10
|
|
||||
Total Maya 2-1-1
|
$
|
18.13
|
|
|
$
|
21.43
|
|
|
$
|
16.89
|
|
|
$
|
22.70
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
Millions of dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and other operating revenues
|
$
|
146
|
|
|
$
|
171
|
|
|
$
|
460
|
|
|
$
|
468
|
|
EBITDA
|
83
|
|
|
98
|
|
|
273
|
|
|
267
|
|
|
Nine Months Ended
September 30, |
||||||
Millions of dollars
|
2019
|
|
2018
|
||||
Source (use) of cash:
|
|
|
|
||||
Operating activities
|
$
|
3,719
|
|
|
$
|
4,174
|
|
Investing activities
|
(1,210
|
)
|
|
(2,901
|
)
|
||
Financing activities
|
(2,382
|
)
|
|
(2,242
|
)
|
|
Nine Months Ended
September 30, |
||||||
Millions of dollars
|
2019
|
|
2018
|
||||
Capital expenditures by segment:
|
|
|
|
||||
O&P–Americas
|
$
|
828
|
|
|
$
|
800
|
|
O&P–EAI
|
148
|
|
|
156
|
|
||
I&D
|
734
|
|
|
248
|
|
||
APS
|
41
|
|
|
41
|
|
||
Refining
|
137
|
|
|
128
|
|
||
Technology
|
60
|
|
|
29
|
|
||
Other
|
15
|
|
|
5
|
|
||
Consolidated capital expenditures
|
$
|
1,963
|
|
|
$
|
1,407
|
|
•
|
$1,697 million under our $2,500 million revolving credit facility, which backs our $2,500 million commercial paper program. Availability under this facility is net of outstanding borrowings, outstanding letters of credit provided under the facility and notes issued under our commercial paper program. A small portion of our availability under this facility is impacted by changes in the euro/U.S. dollar exchange rate. At September 30, 2019, we had $786 million of outstanding commercial paper, net of discount, no outstanding letters of credit and no outstanding borrowings under the facility;
|
•
|
$314 million under our $900 million U.S. accounts receivable facility. Availability under this facility is subject to a borrowing base of eligible receivables, which is reduced by outstanding borrowings and letters of credit, if any. At September 30, 2019 there was $500 million of borrowings and no letters of credit outstanding under this facility; and
|
•
|
$3,000 million under our $4,000 million three-year senior unsecured delayed draw term loan facility. Availability under this facility is net of amounts previously borrowed. At September 30, 2019 there were no outstanding borrowings under this facility.
|
•
|
the cost of raw materials represents a substantial portion of our operating expenses, and energy costs generally follow price trends of crude oil, natural gas liquids and/or natural gas; price volatility can significantly affect our results of operations and we may be unable to pass raw material and energy cost increases on to our customers due to the significant competition that we face, the commodity nature of our products and the time required to implement pricing changes;
|
•
|
our operations in the U.S. have benefited from low-cost natural gas and natural gas liquids; decreased availability of these materials (for example, from their export or regulations impacting hydraulic fracturing in the U.S.) could reduce the current benefits we receive;
|
•
|
if crude oil prices fell materially, or decrease relative to U.S. natural gas prices, we would see less benefit from low-cost natural gas and natural gas liquids and it could have a negative effect on our results of operations;
|
•
|
industry production capacities and operating rates may lead to periods of oversupply and low profitability; for example, substantial capacity expansions are underway in the U.S. olefins industry;
|
•
|
we may face unplanned operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental incidents) at any of our facilities, which would negatively impact our operating results; for example, because the Houston refinery is our only refining operation, we would not have the ability to increase production elsewhere to mitigate the impact of any outage at that facility;
|
•
|
changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate could increase our costs, restrict our operations and reduce our operating results;
|
•
|
our ability to execute our organic growth plans may be negatively affected by our ability to complete projects on time and on budget;
|
•
|
our ability to acquire new businesses and assets and integrate those operations into our existing operations and make cost-saving changes in operations;
|
•
|
any loss or non-renewal of favorable tax treatment under agreements or treaties, or changes in laws, regulations or treaties, may substantially increase our tax liabilities;
|
•
|
uncertainties associated with worldwide economies could create reductions in demand and pricing, as well as increased counterparty risks, which could reduce liquidity or cause financial losses resulting from counterparty default;
|
•
|
the negative outcome of any legal, tax and environmental proceedings or changes in laws or regulations regarding legal, tax and environmental matters may increase our costs or otherwise limit our ability to achieve savings under current regulations;
|
•
|
we may be required to reduce production or idle certain facilities because of the cyclical and volatile nature of the supply-demand balance in the chemical and refining industries, which would negatively affect our operating results;
|
•
|
we rely on continuing technological innovation, and an inability to protect our technology, or others’ technological developments could negatively impact our competitive position;
|
•
|
we have significant international operations, and fluctuations in exchange rates, valuations of currencies and our possible inability to access cash from operations in certain jurisdictions on a tax-efficient basis, if at all, could negatively affect our liquidity and our results of operations;
|
•
|
we are subject to the risks of doing business at a global level, including wars, terrorist activities, political and economic instability and disruptions and changes in governmental policies, which could cause increased expenses, decreased demand or prices for our products and/or disruptions in operations, all of which could reduce our operating results;
|
•
|
if we are unable to comply with the terms of our credit facilities, indebtedness and other financing arrangements, those obligations could be accelerated, which we may not be able to repay; and
|
•
|
we may be unable to incur additional indebtedness or obtain financing on terms that we deem acceptable, including for refinancing of our current obligations; higher interest rates and costs of financing would increase our expenses.
|
|
|
Issuer Purchases of Equity Securities
|
|
|
|||||||||
Period
|
|
Total Number
of Shares
Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Authorizations
|
|
Maximum Number
of Shares That May Yet
Be Purchased Under the
Plans or Authorizations
|
|||||
July 1 – July 31
|
|
35,144,596
|
|
|
$
|
88.18
|
|
|
35,144,596
|
|
|
1,887,998
|
|
August 1 – August 31
|
|
1,887,998
|
|
|
$
|
74.77
|
|
|
1,887,998
|
|
|
—
|
|
September 1 – September 30
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
33,336,067
|
|
Total
|
|
37,032,594
|
|
|
$
|
87.50
|
|
|
37,032,594
|
|
|
33,336,067
|
|
Exhibit Number
|
|
Description
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.3
|
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
|
|
|
|
|
4.6
|
|
|
|
|
|
4.7
|
|
|
|
|
|
10.1
|
|
|
|
|
|
31.1*
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
32*
|
|
|
|
|
|
101.INS*
|
|
XBRL Instance Document–The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH*
|
|
XBRL Schema Document
|
|
|
|
101.CAL*
|
|
XBRL Calculation Linkbase Document
|
|
|
|
Exhibit Number
|
|
Description
|
101.DEF*
|
|
XBRL Definition Linkbase Document
|
|
|
|
101.LAB*
|
|
XBRL Labels Linkbase Document
|
|
|
|
101.PRE*
|
|
XBRL Presentation Linkbase Document
|
|
|
|
104*
|
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
|
|
LYONDELLBASELL INDUSTRIES N.V.
|
|
|
|
Date:
|
November 1, 2019
|
/s/ Jacinth C. Smiley
|
|
|
Jacinth C. Smiley
|
|
|
Vice President and
|
|
|
Chief Accounting Officer
|
|
|
(Principal Accounting Officer)
|
1 Year LyondellBasell Industrie... Chart |
1 Month LyondellBasell Industrie... Chart |
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