Celanese Corp
For the period ended Dec 31, 2023. Filed Feb 23, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Feb 23, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
7. Investments in Affiliates
- Investments in Affiliates
Entities in which the Company has an investment accounted for under the equity method of accounting or equity investments without readily determinable fair values are considered affiliates; any transactions or balances with such companies are considered affiliate transactions.
Equity Method
On September 27, 2023, the Company formed a food ingredients joint venture with Mitsui under the name Nutrinova. The Company accounted for its interest in the joint venture as an equity method investment. See Note 4 for additional information.
As a part of the M&M Acquisition, the Company acquired certain equity method investments and ownership interests.
The Company has ownership interests in 14 equity method investments ranging from 22% to 50% at December 31, 2023.
Equity method investments by business segment are as follows:
| CarryingValue as ofDecember 31, · Share ofEarnings (Loss)Year EndedDecember 31, · Dividends and Other Distributions Year EndedDecember 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | |
| (In $ millions) | ||||||||
| Engineered Materials(1) | 898 | 760 | 88 | 209 | 133 | (145) | (204) | (98) |
| Other Activities | 56 | 53 | 14 | 11 | 13 | (12) | (13) | (14) |
| Total | 954 | 813 | 102 | 220 | 146 | (157) | (217) | (112) |
(1)Engineered Materials includes an equity method investment with losses in excess of its carrying amount due to the Company's guarantee of various debt obligations under agreements with third parties related to an equity affiliate (Note 19). This equity method investment was recorded in Current Other liabilities (Note 10) as of December 31, 2023 and December 31, 2022.
Equity Investments Without Readily Determinable Fair Values
The Company has ownership interests in 4 equity investments without readily determinable fair values ranging from 8% to 31% at December 31, 2023.
Equity investments without readily determinable fair values by business segment are as follows:
| Carrying Value as ofDecember 31, · DividendIncome for theYear Ended December 31, | |||||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2021 | |
| (In $ millions) | |||||
| Acetyl Chain | 165 | 165 | 125 | 132 | 146 |
| Other Activities | 5 | 5 | 1 | 1 | 1 |
| Total | 170 | 170 | 126 | 133 | 147 |
Transactions with Affiliates
The Company owns manufacturing facilities at the InfraServ location in Frankfurt am Main-Hoechst, Germany and has contractual agreements with the InfraServ Entities and certain other equity affiliates and investees accounted for at cost less impairment, adjusted for observable price changes for an identical or similar investment of the same issuer. These contractual agreements primarily relate to energy purchases, site services and purchases of product for consumption and resale.
Transactions and balances with affiliates are as follows:
| Year Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| (In $ millions) | |||
| Purchases | 490 | 590 | 334 |
| Sales and other credits | 212 | 72 | 74 |
| As of December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| (In $ millions) | ||
| Trade receivables | 7 | 8 |
| Non-trade receivables | 40 | 36 |
| Current notes receivables | 57 | — |
| Total due from affiliates | 104 | 44 |
| Short-term borrowings(1) | 23 | — |
| Trade payables | 52 | 36 |
| Current Other liabilities | 34 | 37 |
| Total due to affiliates | 109 | 73 |
(1)The Company has agreements with certain affiliates whereby excess affiliate cash is lent to and managed by the Company at variable interest rates governed by those agreements.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.