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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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The Netherlands
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98-0646235
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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1221 McKinney St.,
Suite 300
Houston, Texas
USA 77010
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4
th
Floor, One Vine Street
London
W1J0AH
The United Kingdom
|
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Delftseplein 27E
3013 AA Rotterdam
The Netherlands
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(713) 309-7200
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+44 (0) 207 220 2600
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+31 (0)10 275 5500
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Title of Each Class
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Name of Each Exchange On Which Registered
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Ordinary Shares, €0.04 Par Value
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New York Stock Exchange
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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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PART I
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PART II
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PART III
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PART IV
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•
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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;
|
•
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our operations in the United States (“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;
|
•
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if crude oil prices fall 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;
|
•
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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 failures, 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;
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•
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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;
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•
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execution of our organic growth plans may be negatively affected by our ability to complete projects on time and on budget;
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•
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our growth depends on the opportunities available to acquire new businesses and assets and our ability to integrate them into our existing operations;
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•
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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;
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•
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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, reduce demand for our products, or otherwise limit our ability to achieve savings under current regulations;
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•
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any loss or non-renewal of favorable tax treatment under tax agreements or tax treaties, or changes in tax laws, regulations or treaties, may substantially increase our tax liabilities;
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•
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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;
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•
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we rely on continuing technological innovation, and an inability to protect our technology, or others’ technological developments, could negatively impact our competitive position;
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•
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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;
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•
|
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;
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•
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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
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•
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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.
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•
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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.
|
•
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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.
|
•
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Refining
. Our Refining segment refines heavy, high-sulfur crude oil and other crude oils of varied types and sources available on the U.S. Gulf Coast into refined products including gasoline and distillates.
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•
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Technology
. Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
|
•
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the second largest producer of ethylene in North America, with ethylene capacity of 12.0 billion pounds per year;
|
•
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the third largest producer of PE in North America with 6.4 billion pounds per year of capacity; and
|
•
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the largest producer of PP in North America, with 4.0 billion pounds, including our share of our Mexican joint venture capacity and approximately 620 million pounds of
Catalloy
capacity reported within our Advanced Polymer Solutions segment.
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•
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the fifth largest producer of ethylene in Europe with an ethylene capacity of 4.3 billion pounds per year;
|
•
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the largest producer of PP in Europe with 5.8 billion pounds per year of capacity, including our share of our joint venture in Poland and approximately 580 million pounds of
Catalloy
capacity reported within our Advanced Polymer Solutions segment; and
|
•
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the largest producer of PE in Europe with 4.8 billion pounds per year of capacity, including our share of our joint venture in Poland.
|
•
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the second largest producer of PO worldwide; and
|
•
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the second largest producer of oxyfuels worldwide.
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Name and Age
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Significant Experience
|
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Bhavesh V. (“Bob”) Patel, 52
|
|
Chief Executive Officer since January 2015 and member of the Board of Directors since June 2018.
Executive Vice President, Olefins and Polyolefins–EAI and Technology from October 2013 to January 2015.
Senior Vice President, Olefins and Polyolefins–EAI and Technology from November 2010 to October 2013.
Senior Vice President, Olefins and Polyolefins–Americas from March 2010 to June 2011.
|
|
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Thomas Aebischer, 57
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Executive Vice President and Chief Financial Officer since January 2016.
Chief Financial Officer of LafargeHolcim from July 2015 to December 2015.
Chief Financial Officer of Holcim Ltd. from January 2011 to June 2015.
|
|
|
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Paul Augustowski, 58
|
|
Senior Vice President, Olefins & Polyolefins
–
Americas since January 2016.
Vice President, Polymer Sales
–
Americas from January 2015 to January 2016.
Director, Polypropylene and
Catalloy
–
Americas from November 2011 to January 2015.
|
|
|
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Darleen Caron, 54
|
|
Executive Vice President and Chief Human Resources Officer since October 2017.
Executive Vice President of Global Human Resources and Member of The Office of The President at SNC Lavalin Group, Inc. from December 2010 to December 2015.
|
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Daniel Coombs, 62
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|
Executive Vice President, Global Manufacturing, Projects and Refining since October 2018.
Executive Vice President, Global Manufacturing, Projects, Refining and Technology from February 2017 to October 2018.
Executive Vice President, Global Olefins and Polyolefins, and Technology from January 2016 to February 2017.
Executive Vice President, Intermediates and Derivatives from May 2015 to January 2016.
Senior Vice President of Manufacturing for Chevron Phillips Chemical from December 2013 to May 2015.
|
|
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Senior Vice President for Specialties, Aromatics and Styrenics for Chevron Phillips Chemical from December 2011 to November 2013.
Vice President of Corporate Planning and Development for Chevron Phillips Chemical from September 2011 to November 2011.
|
|
|
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Massimo Covezzi, 61
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Senior Vice President, Research and Development since January 2008.
|
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Name and Age
|
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Significant Experience
|
Stephen Doktycz, 57
|
|
Senior Vice President, Strategic Planning and Transactions since March 2017.
Corporate Director and Executive Project Lead at The Dow Chemical Company from 2013 to March 2017.
Global Director, Corporate and Strategic Development at The Dow Chemical Company from 2011 to 2013.
|
|
|
|
Dale Friedrichs, 55
|
|
Vice President, Health, Safety, Environment and Security since February 2017.
Site Manager of various facilities from January 1995 to February 2017.
|
|
|
|
James Guilfoyle, 48
|
|
Executive Vice President, Advanced Polymer Solutions & Global Supply Chain since July 2018.
Senior Vice President, Global Intermediates & Derivatives and Global Supply Chain from February 2017 to July 2018.
Senior Vice President, Global Intermediates and Derivatives from June 2015 to February 2017.
Vice President of Global Propylene Oxide and Co-Products from March 2015 to May 2015.
Director of Polymer Sales Americas from January 2012 to February 2015.
|
|
|
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Jeffrey Kaplan, 50
|
|
Executive Vice President and Chief Legal Officer since March 2015.
Deputy General Counsel from December 2009 to March 2015.
|
|
|
|
Richard Roudeix, 56
|
|
Senior Vice President, Olefins & Polyolefins, Europe, Asia and International since February 2017.
Senior Vice President, Olefins & Polyolefins, Europe from March 2015 to February 2017.
Director, Olefins Europe from May 2009 to March 2015.
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Location
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Segment
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Americas
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Bayport (Pasadena), Texas
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I&D
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Bayport (Pasadena), Texas
(1)
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I&D
|
Bayport (Pasadena), Texas
|
|
O&P–Americas
|
Channelview, Texas
(2)
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|
O&P–Americas
|
Channelview, Texas
(1)(2)
|
|
I&D
|
Chocolate Bayou, Texas
|
|
O&P–Americas
|
Clinton, Iowa
|
|
O&P–Americas
|
Corpus Christi, Texas
|
|
O&P–Americas
|
Edison, New Jersey
|
|
O&P–Americas
|
Houston, Texas
|
|
Refining
|
La Porte, Texas
(3)
|
|
O&P–Americas
|
La Porte, Texas
(3)(4)
|
|
I&D
|
Lake Charles, Louisiana
|
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O&P–Americas
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Matagorda, Texas
|
|
O&P–Americas
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Morris, Illinois
|
|
O&P–Americas
|
Tuscola, Illinois
|
|
O&P–Americas
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Victoria, Texas†
|
|
O&P–Americas
|
|
|
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Europe
|
|
|
|
|
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Berre l’Etang, France
|
|
O&P–EAI
|
Botlek, Rotterdam, The Netherlands†
|
|
I&D
|
Brindisi, Italy
|
|
O&P–EAI
|
Carrington, UK†
|
|
O&P–EAI
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Ferrara, Italy
|
|
O&P–EAI
|
|
|
Technology
|
Fos-sur-Mer, France†
|
|
I&D
|
Frankfurt, Germany†
|
|
O&P–EAI
|
|
|
Technology
|
Knapsack, Germany†
|
|
O&P–EAI
|
Kerpen, Germany
|
|
APS
|
Ludwigshafen, Germany†
|
|
Technology
|
Maasvlakte, The Netherlands
(5)
|
|
I&D
|
Moerdijk, The Netherlands†
|
|
APS
|
Münchsmünster, Germany
|
|
O&P–EAI
|
Tarragona, Spain
(6)
|
|
O&P–EAI
|
|
|
APS
|
Wesseling, Germany
|
|
O&P–EAI
|
Location
|
|
Segment
|
|
|
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Asia Pacific
|
|
|
|
|
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Geelong, Australia†
|
|
O&P–EAI
|
(1)
|
The Bayport PO/TBA plants and the Channelview PO/SM I plant are held by the U.S. PO joint venture between Covestro and Lyondell Chemical Company. These plants are located on land leased by the U.S. PO joint venture.
|
(2)
|
Equistar Chemicals, LP operates a styrene maleic anhydride unit and a polybutadiene unit, which are owned by an unrelated party and are located within the Channelview facility on property leased from Equistar Chemicals, LP.
|
(3)
|
The La Porte facilities are on contiguous property.
|
(4)
|
The La Porte Methanol facility is owned by La Porte Methanol Company, a partnership owned 85% by us.
|
(5)
|
The Maasvlakte plant is owned by the European PO joint venture and is located on land leased by the European PO joint venture.
|
(6)
|
The Tarragona PP facility is located on leased land; the compounds facility is located on co-owned land.
|
Item 1A.
|
Risk Factors.
|
•
|
pipeline leaks and ruptures;
|
•
|
explosions;
|
•
|
fires;
|
•
|
severe weather and natural disasters;
|
•
|
mechanical failure;
|
•
|
unscheduled downtimes;
|
•
|
supplier disruptions;
|
•
|
labor shortages or other labor difficulties;
|
•
|
transportation interruptions;
|
•
|
remediation complications;
|
•
|
increased restrictions on, or the unavailability of, water for use at our manufacturing sites or for the transport of our products or raw materials;
|
•
|
chemical and oil spills;
|
•
|
discharges or releases of toxic or hazardous substances or gases;
|
•
|
shipment of incorrect or off-specification product to customers;
|
•
|
storage tank leaks;
|
•
|
other environmental risks; and
|
•
|
terrorist acts.
|
•
|
denial of or delay in receiving requisite regulatory approvals and/or permits; unplanned increases in the cost of construction materials or labor;
|
•
|
disruptions in transportation of components or construction materials;
|
•
|
adverse weather conditions, natural disasters or other events (such as equipment malfunctions, explosions, fires or spills) affecting our facilities, or those of vendors or suppliers;
|
•
|
shortages of sufficiently skilled labor, or labor disagreements resulting in unplanned work stoppages; and
|
•
|
nonperformance by, or disputes with, vendors, suppliers, contractors or subcontractors.
|
•
|
emissions to the air;
|
•
|
discharges onto land or surface waters or into groundwater; and
|
•
|
the generation, handling, storage, transportation, treatment, disposal and remediation of hazardous substances and waste materials.
|
Item 1B.
|
Unresolved Staff Comments.
|
Item 3.
|
Legal Proceedings.
|
Item 4.
|
Mine Safety Disclosures.
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|
|
12/31/2013
|
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2017
|
|
12/31/2018
|
LyondellBasell Industries N.V.
|
$100.00
|
|
$101.83
|
|
$115.20
|
|
$118.38
|
|
$157.99
|
|
$123.97
|
S&P 500 Index
|
$100.00
|
|
$113.69
|
|
$115.26
|
|
$129.05
|
|
$157.22
|
|
$150.33
|
S&P 500 Chemicals Index
|
$100.00
|
|
$110.70
|
|
$106.07
|
|
$116.85
|
|
$148.01
|
|
$130.83
|
2018 Period
|
Total Number
of Shares
Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
|
Maximum Number
of Shares That May Yet
Be Purchased Under the Plans or Programs
|
|||||
October 1—October 31
|
4,414,939
|
|
|
$
|
94.34
|
|
|
4,414,939
|
|
|
49,755,015
|
|
November 1—November 30
|
4,498,765
|
|
|
$
|
93.37
|
|
|
4,498,765
|
|
|
45,256,250
|
|
December 1—December 31
|
2,628,200
|
|
|
$
|
83.69
|
|
|
2,628,200
|
|
|
42,628,050
|
|
Total
|
11,541,904
|
|
|
$
|
91.54
|
|
|
11,541,904
|
|
|
42,628,050
|
|
Item 6.
|
Selected Financial Data.
|
|
Year Ended December 31,
|
||||||||||||||||||
In millions of dollars, except per share data
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Results of operations data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales and other operating revenues
|
$
|
39,004
|
|
|
$
|
34,484
|
|
|
$
|
29,183
|
|
|
$
|
32,735
|
|
|
$
|
45,608
|
|
Operating income
(a)
|
5,231
|
|
|
5,460
|
|
|
5,060
|
|
|
6,122
|
|
|
5,736
|
|
|||||
Interest expense
(b)
|
(360
|
)
|
|
(491
|
)
|
|
(322
|
)
|
|
(310
|
)
|
|
(352
|
)
|
|||||
Income from equity investments
|
289
|
|
|
321
|
|
|
367
|
|
|
339
|
|
|
257
|
|
|||||
Income from continuing operations
(a)(b)(c)
|
4,698
|
|
|
4,895
|
|
|
3,847
|
|
|
4,479
|
|
|
4,172
|
|
|||||
Earnings per share from continuing operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
12.06
|
|
|
12.28
|
|
|
9.17
|
|
|
9.63
|
|
|
8.04
|
|
|||||
Diluted
|
12.03
|
|
|
12.28
|
|
|
9.15
|
|
|
9.60
|
|
|
8.00
|
|
|||||
Loss from discontinued operations, net of tax
|
(8
|
)
|
|
(18
|
)
|
|
(10
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|||||
Loss per share from discontinued operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
(0.02
|
)
|
|
(0.05
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|||||
Diluted
|
(0.02
|
)
|
|
(0.05
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|||||
Balance sheet data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
28,278
|
|
|
26,206
|
|
|
23,442
|
|
|
22,757
|
|
|
24,221
|
|
|||||
Short-term debt
|
885
|
|
|
68
|
|
|
594
|
|
|
353
|
|
|
346
|
|
|||||
Long-term debt
(d)
|
8,502
|
|
|
8,551
|
|
|
8,387
|
|
|
7,675
|
|
|
6,699
|
|
|||||
Cash and cash equivalents
|
332
|
|
|
1,523
|
|
|
875
|
|
|
924
|
|
|
1,031
|
|
|||||
Short-term investments
|
892
|
|
|
1,307
|
|
|
1,147
|
|
|
1,064
|
|
|
1,593
|
|
|||||
Accounts receivable
|
3,503
|
|
|
3,539
|
|
|
2,842
|
|
|
2,517
|
|
|
3,448
|
|
|||||
Inventories
|
4,515
|
|
|
4,217
|
|
|
3,809
|
|
|
4,051
|
|
|
4,517
|
|
|||||
Working capital
|
4,931
|
|
|
4,861
|
|
|
4,122
|
|
|
4,386
|
|
|
4,901
|
|
|||||
Cash flow data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by (used in):
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
5,471
|
|
|
5,206
|
|
|
5,606
|
|
|
5,842
|
|
|
6,048
|
|
|||||
Investing activities
|
(3,559
|
)
|
|
(1,756
|
)
|
|
(2,301
|
)
|
|
(1,046
|
)
|
|
(3,539
|
)
|
|||||
Expenditures for property, plant and equipment
|
(2,105
|
)
|
|
(1,547
|
)
|
|
(2,243
|
)
|
|
(1,440
|
)
|
|
(1,499
|
)
|
|||||
Financing activities
|
(3,008
|
)
|
|
(2,859
|
)
|
|
(3,349
|
)
|
|
(4,850
|
)
|
|
(5,907
|
)
|
|||||
Dividends declared per share
|
4.00
|
|
|
3.55
|
|
|
3.33
|
|
|
3.04
|
|
|
2.70
|
|
(a)
|
Operating income and Income from continuing operations in 2018 include charges totaling
$73 million
(
$57 million
, after tax) for acquisition-related transaction and integration costs associated with our acquisition of A. Schulman Inc. and a pre-tax gain of
$36 million
(
$34 million
, after tax) on the sale of our carbon black subsidiary in France. In 2017, we had a pre-tax gain of
$108 million
(
$103 million
, after tax) on the sale of our
27%
interest in Geosel, a joint venture in France; a pretax gain of
$31 million
(
$20 million
, after tax) on the sale of property in Lake Charles, Louisiana; and a pre-tax, non-cash gain of
$21 million
(
$14 million
, after tax) related to the elimination of an obligation associated with a
|
(b)
|
Interest expense and Income from continuing operations in 2017 included pre-tax charges of $113 million ($106 million, after tax) related to the redemption of $1,000 million aggregate principal amount of our then outstanding 5% senior notes due 2019.
|
(c)
|
Income from continuing operations in 2018 includes a
$358 million
benefit related to
$299 million
of previously unrecognized tax benefits and the release of
$59 million
of associated accrued interest. In 2017, it included an
$819 million
non-cash tax benefit related to the lower federal income tax rate resulting from the enactment of the U.S. Tax Cuts and Jobs Act. In 2016, it included $135 million of out of period adjustments related to taxes on our cross-currency swaps and deferred liabilities related to some of our consolidated subsidiaries.
|
(d)
|
Long-term debt includes current maturities of long-term debt.
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
•
|
Lower Olefins and Polyolefins–Americas (“O&P–Americas”) segment results with lower ethylene margins and higher fixed costs, offset by higher polyolefins margins;
|
•
|
Lower Olefins and Polyolefins–Europe, Asia, International (“O&P–EAI”) segment results with lower margins and volumes in Europe, partly offset by favorable foreign exchange impacts;
|
•
|
Higher Intermediates and Derivatives (“I&D”) segment results with increased margins and volumes;
|
•
|
Lower Advanced Polymer Solutions (“APS”) segment results as lower margins and the impact of acquisition-related transaction and integration costs were partly offset by the contribution of results from A. Schulman product lines following the
August 21, 2018
acquisition;
|
•
|
Higher Refining segment results with higher refining margins and better yields; and
|
•
|
Higher Technology segment results due mostly to increased licensing revenue.
|
•
|
Completion of the
$1.9 billion
acquisition of A. Schulman, a leading global supplier of high-performance plastic compounds, composites and powders, on
August 21, 2018
;
|
•
|
Groundbreaking for our new
$2.4 billion
PO/TBA plant at our Channelview, Texas facility on
August 22, 2018
;
|
•
|
Construction of our
Hyperzone
high density polyethylene plant on track for planned start-up in the third quarter of 2019;
|
•
|
Non-cash income tax benefit of
$346 million
related to an audit settlement associated with specific uncertain tax positions recognized in the second quarter of 2018;
|
•
|
Acquisition of a 50% interest in Quality Circular Polymers, a premium plastics recycling company in Sittard-Geleen, Netherlands on March 14, 2018; and
|
•
|
Increase in quarterly dividend from
$0.90
to
$1.00
in February 2018.
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues
|
|
$
|
39,004
|
|
|
$
|
34,484
|
|
|
$
|
29,183
|
|
Cost of sales
|
|
32,529
|
|
|
28,059
|
|
|
23,191
|
|
|||
Selling, general and administrative expenses
|
|
1,129
|
|
|
859
|
|
|
833
|
|
|||
Research and development expenses
|
|
115
|
|
|
106
|
|
|
99
|
|
|||
Operating income
|
|
5,231
|
|
|
5,460
|
|
|
5,060
|
|
|||
Interest expense
|
|
(360
|
)
|
|
(491
|
)
|
|
(322
|
)
|
|||
Interest income
|
|
45
|
|
|
24
|
|
|
17
|
|
|||
Other income, net
|
|
106
|
|
|
179
|
|
|
111
|
|
|||
Income from equity investments
|
|
289
|
|
|
321
|
|
|
367
|
|
|||
Provision for income taxes
|
|
613
|
|
|
598
|
|
|
1,386
|
|
|||
Income from continuing operations
|
|
4,698
|
|
|
4,895
|
|
|
3,847
|
|
|||
Loss from discontinued operations, net of tax
|
|
(8
|
)
|
|
(18
|
)
|
|
(10
|
)
|
|||
Net income
|
|
$
|
4,690
|
|
|
$
|
4,877
|
|
|
$
|
3,837
|
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
||||||
O&P–Americas segment
|
|
$
|
10,408
|
|
|
$
|
10,004
|
|
|
$
|
8,722
|
|
O&P–EAI segment
|
|
10,838
|
|
|
10,218
|
|
|
8,718
|
|
|||
I&D segment
|
|
9,588
|
|
|
8,472
|
|
|
7,226
|
|
|||
APS segment
|
|
4,024
|
|
|
2,922
|
|
|
2,601
|
|
|||
Refining segment
|
|
9,157
|
|
|
6,848
|
|
|
5,135
|
|
|||
Technology segment
|
|
583
|
|
|
450
|
|
|
479
|
|
|||
Other, including segment eliminations
|
|
(5,594
|
)
|
|
(4,430
|
)
|
|
(3,698
|
)
|
|||
Total
|
|
$
|
39,004
|
|
|
$
|
34,484
|
|
|
$
|
29,183
|
|
Operating income (loss):
|
|
|
|
|
|
|
||||||
O&P–Americas segment
|
|
$
|
2,251
|
|
|
$
|
2,382
|
|
|
$
|
2,308
|
|
O&P–EAI segment
|
|
682
|
|
|
1,308
|
|
|
1,207
|
|
|||
I&D segment
|
|
1,716
|
|
|
1,202
|
|
|
1,058
|
|
|||
APS segment
|
|
329
|
|
|
405
|
|
|
372
|
|
|||
Refining segment
|
|
(28
|
)
|
|
(22
|
)
|
|
(99
|
)
|
|||
Technology segment
|
|
284
|
|
|
183
|
|
|
221
|
|
|||
Other, including segment eliminations
|
|
(3
|
)
|
|
2
|
|
|
(7
|
)
|
|||
Total
|
|
$
|
5,231
|
|
|
$
|
5,460
|
|
|
$
|
5,060
|
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
|
2018
|
|
2017
|
|
2016
|
||||||
Depreciation and amortization:
|
|
|
|
|
|
|
||||||
O&P–Americas segment
|
|
$
|
442
|
|
|
$
|
433
|
|
|
$
|
359
|
|
O&P–EAI segment
|
|
208
|
|
|
210
|
|
|
201
|
|
|||
I&D segment
|
|
287
|
|
|
279
|
|
|
269
|
|
|||
APS segment
|
|
69
|
|
|
35
|
|
|
31
|
|
|||
Refining segment
|
|
192
|
|
|
177
|
|
|
163
|
|
|||
Technology segment
|
|
43
|
|
|
40
|
|
|
41
|
|
|||
Total
|
|
$
|
1,241
|
|
|
$
|
1,174
|
|
|
$
|
1,064
|
|
Income from equity investments:
|
|
|
|
|
|
|
||||||
O&P—Americas segment
|
|
$
|
58
|
|
|
$
|
42
|
|
|
$
|
59
|
|
O&P—EAI segment
|
|
225
|
|
|
271
|
|
|
302
|
|
|||
I&D segment
|
|
6
|
|
|
8
|
|
|
6
|
|
|||
Total
|
|
$
|
289
|
|
|
$
|
321
|
|
|
$
|
367
|
|
Other income (expense), net:
|
|
|
|
|
|
|
||||||
O&P—Americas segment
|
|
$
|
11
|
|
|
$
|
42
|
|
|
$
|
62
|
|
O&P—EAI segment
|
|
48
|
|
|
138
|
|
|
19
|
|
|||
I&D segment
|
|
2
|
|
|
1
|
|
|
—
|
|
|||
APS segment
|
|
2
|
|
|
(2
|
)
|
|
24
|
|
|||
Refining segment
|
|
3
|
|
|
2
|
|
|
8
|
|
|||
Technology segment
|
|
1
|
|
|
—
|
|
|
—
|
|
|||
Other, including intersegment eliminations
|
|
39
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
Total
|
|
$
|
106
|
|
|
$
|
179
|
|
|
$
|
111
|
|
EBITDA:
|
|
|
|
|
|
|
||||||
O&P—Americas segment
|
|
$
|
2,762
|
|
|
$
|
2,899
|
|
|
$
|
2,788
|
|
O&P—EAI segment
|
|
1,163
|
|
|
1,927
|
|
|
1,729
|
|
|||
I&D segment
|
|
2,011
|
|
|
1,490
|
|
|
1,333
|
|
|||
APS segment
|
|
400
|
|
|
438
|
|
|
427
|
|
|||
Refining segment
|
|
167
|
|
|
157
|
|
|
72
|
|
|||
Technology segment
|
|
328
|
|
|
223
|
|
|
262
|
|
|||
Other, including intersegment eliminations
|
|
36
|
|
|
—
|
|
|
(9
|
)
|
|||
Total
|
|
$
|
6,867
|
|
|
$
|
7,134
|
|
|
$
|
6,602
|
|
•
|
NGLs, principally ethane and propane, the prices of which are generally affected by natural gas prices; and
|
•
|
crude oil-based liquids (“liquids” or “heavy liquids”), including naphtha, condensates, and gas oils, the prices of which are generally related to crude oil prices.
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues
|
|
$
|
10,408
|
|
|
$
|
10,004
|
|
|
$
|
8,722
|
|
Income from equity investments
|
|
58
|
|
|
42
|
|
|
59
|
|
|||
EBITDA
|
|
2,762
|
|
|
2,899
|
|
|
2,788
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues
|
$
|
10,838
|
|
|
$
|
10,218
|
|
|
$
|
8,718
|
|
Income from equity investments
|
225
|
|
|
271
|
|
|
302
|
|
|||
EBITDA
|
1,163
|
|
|
1,927
|
|
|
1,729
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues
|
$
|
9,588
|
|
|
$
|
8,472
|
|
|
$
|
7,226
|
|
Income from equity investments
|
6
|
|
|
8
|
|
|
6
|
|
|||
EBITDA
|
2,011
|
|
|
1,490
|
|
|
1,333
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues
|
$
|
4,024
|
|
|
$
|
2,922
|
|
|
$
|
2,601
|
|
EBITDA
|
400
|
|
|
438
|
|
|
427
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues
|
$
|
9,157
|
|
|
$
|
6,848
|
|
|
$
|
5,135
|
|
EBITDA
|
167
|
|
|
157
|
|
|
72
|
|
|||
|
|
|
|
|
|
||||||
Heavy crude oil processing rates, thousands of barrels per day
|
231
|
|
|
236
|
|
|
201
|
|
|||
|
|
|
|
|
|
||||||
Market margins, dollars per barrel
|
|
|
|
|
|
||||||
Light crude oil—2-1-1
|
$
|
12.35
|
|
|
$
|
13.54
|
|
|
$
|
10.73
|
|
Light crude oil—Maya differential
|
7.50
|
|
|
7.02
|
|
|
8.51
|
|
|||
Total Maya 2-1-1
|
$
|
19.85
|
|
|
$
|
20.56
|
|
|
$
|
19.24
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues
|
$
|
583
|
|
|
$
|
450
|
|
|
$
|
479
|
|
EBITDA
|
328
|
|
|
223
|
|
|
262
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Source (use) of cash:
|
|
|
|
|
|
||||||
Operating activities
|
$
|
5,471
|
|
|
$
|
5,206
|
|
|
$
|
5,606
|
|
Investing activities
|
(3,559
|
)
|
|
(1,756
|
)
|
|
(2,301
|
)
|
|||
Financing activities
|
(3,008
|
)
|
|
(2,859
|
)
|
|
(3,349
|
)
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Capital expenditures by segment:
|
|
|
|
|
|
||||||
O&P—Americas
|
$
|
1,079
|
|
|
$
|
741
|
|
|
$
|
1,370
|
|
O&P—EAI
|
248
|
|
|
163
|
|
|
229
|
|
|||
I&D
|
409
|
|
|
332
|
|
|
333
|
|
|||
APS
|
62
|
|
|
55
|
|
|
38
|
|
|||
Refining
|
250
|
|
|
213
|
|
|
224
|
|
|||
Technology
|
48
|
|
|
32
|
|
|
36
|
|
|||
Other
|
9
|
|
|
11
|
|
|
13
|
|
|||
Consolidated capital expenditures of continuing operations
|
$
|
2,105
|
|
|
$
|
1,547
|
|
|
$
|
2,243
|
|
•
|
$1,688 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 December 31, 2018, we had
$809 million
of outstanding commercial paper, net of discount, no outstanding letters of credit and no outstanding borrowings under the facility; and
|
•
|
$829 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. This facility had no outstanding borrowings or letters of credit at December 31, 2018.
|
|
Total
|
|
Payments Due By Period
|
||||||||||||||||||||||||
Millions of dollars
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
||||||||||||||||
Total debt
|
$
|
9,554
|
|
|
$
|
891
|
|
|
$
|
1,001
|
|
|
$
|
1,001
|
|
|
$
|
859
|
|
|
$
|
751
|
|
|
$
|
5,051
|
|
Interest on total debt
|
5,155
|
|
|
382
|
|
|
357
|
|
|
357
|
|
|
298
|
|
|
281
|
|
|
3,480
|
|
|||||||
Contract liabilities
|
138
|
|
|
128
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||||
Other
|
1,886
|
|
|
1,405
|
|
|
124
|
|
|
48
|
|
|
16
|
|
|
28
|
|
|
265
|
|
|||||||
Deferred income taxes
|
1,975
|
|
|
318
|
|
|
118
|
|
|
112
|
|
|
117
|
|
|
66
|
|
|
1,244
|
|
|||||||
Other obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Purchase obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Take-or-pay contracts
|
25,378
|
|
|
3,022
|
|
|
3,000
|
|
|
2,849
|
|
|
2,563
|
|
|
2,537
|
|
|
11,407
|
|
|||||||
Other contracts
|
10,827
|
|
|
5,357
|
|
|
2,408
|
|
|
1,462
|
|
|
248
|
|
|
235
|
|
|
1,117
|
|
|||||||
Operating leases
|
2,475
|
|
|
365
|
|
|
288
|
|
|
256
|
|
|
236
|
|
|
204
|
|
|
1,126
|
|
|||||||
Total
|
$
|
57,388
|
|
|
$
|
11,868
|
|
|
$
|
7,297
|
|
|
$
|
6,085
|
|
|
$
|
4,337
|
|
|
$
|
4,102
|
|
|
$
|
23,699
|
|
|
Effects on
Benefit Obligations
in 2018
|
|
Effects on Net
Periodic Pension
Costs in 2019
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Projected benefit obligations at December 31, 2018
|
$
|
1,752
|
|
|
$
|
1,659
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Projected net periodic pension costs in 2019
|
|
|
|
|
28
|
|
|
60
|
|
||||||
Discount rate increases by 100 basis points
|
(148
|
)
|
|
(183
|
)
|
|
(5
|
)
|
|
(8
|
)
|
||||
Discount rate decreases by 100 basis points
|
179
|
|
|
221
|
|
|
6
|
|
|
12
|
|
|
Effects on
Benefit Obligations
in 2018
|
|
Effects on Net
Periodic Benefit
Costs in 2019
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Projected benefit obligations at December 31, 2018
|
$
|
234
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Projected net periodic benefit costs in 2019
|
|
|
|
|
5
|
|
|
4
|
|
||||||
Discount rate increases by 100 basis points
|
(19
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Discount rate decreases by 100 basis points
|
23
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
|
December 31, 2018
|
||||
Net Investment Hedges
|
Notional Amount
|
|
10% Variance on
Foreign Currency Rate
|
|
Impact on Other
Comprehensive Loss
|
Basis Swaps
|
€617 million
|
|
euro/U.S. dollar rate
|
|
$69 million
|
|
|
|
EURIBOR and LIBOR rates
|
|
Less than $1 million
|
Guaranteed Euro Notes Due 2022
|
€750 million
|
|
euro/U.S. dollar rate
|
|
$86 million
|
Item 8.
|
Financial Statements and Supplementary Data.
|
|
Page
|
LYONDELLBASELL INDUSTRIES N.V.
|
|
Consolidated Financial Statements:
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars, except earnings per share
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues:
|
|
|
|
|
|
||||||
Trade
|
$
|
38,126
|
|
|
$
|
33,705
|
|
|
$
|
28,454
|
|
Related parties
|
878
|
|
|
779
|
|
|
729
|
|
|||
|
39,004
|
|
|
34,484
|
|
|
29,183
|
|
|||
Operating costs and expenses:
|
|
|
|
|
|
||||||
Cost of sales
|
32,529
|
|
|
28,059
|
|
|
23,191
|
|
|||
Selling, general and administrative expenses
|
1,129
|
|
|
859
|
|
|
833
|
|
|||
Research and development expenses
|
115
|
|
|
106
|
|
|
99
|
|
|||
|
33,773
|
|
|
29,024
|
|
|
24,123
|
|
|||
Operating income
|
5,231
|
|
|
5,460
|
|
|
5,060
|
|
|||
Interest expense
|
(360
|
)
|
|
(491
|
)
|
|
(322
|
)
|
|||
Interest income
|
45
|
|
|
24
|
|
|
17
|
|
|||
Other income, net
|
106
|
|
|
179
|
|
|
111
|
|
|||
Income from continuing operations before equity investments and income taxes
|
5,022
|
|
|
5,172
|
|
|
4,866
|
|
|||
Income from equity investments
|
289
|
|
|
321
|
|
|
367
|
|
|||
Income from continuing operations before income taxes
|
5,311
|
|
|
5,493
|
|
|
5,233
|
|
|||
Provision for income taxes
|
613
|
|
|
598
|
|
|
1,386
|
|
|||
Income from continuing operations
|
4,698
|
|
|
4,895
|
|
|
3,847
|
|
|||
Loss from discontinued operations, net of tax
|
(8
|
)
|
|
(18
|
)
|
|
(10
|
)
|
|||
Net income
|
4,690
|
|
|
4,877
|
|
|
3,837
|
|
|||
Net (income) loss attributable to non-controlling interests
|
—
|
|
|
2
|
|
|
(1
|
)
|
|||
Net income attributable to LyondellBasell Industries N.V.
|
4,690
|
|
|
4,879
|
|
|
3,836
|
|
|||
Dividends on A. Schulman Special Stock
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
Net income attributable to the Company shareholders
|
$
|
4,688
|
|
|
$
|
4,879
|
|
|
$
|
3,836
|
|
Earnings per share:
|
|
|
|
|
|
||||||
Net income (loss) attributable to the Company shareholders —
|
|
|
|
|
|
||||||
Basic:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
12.06
|
|
|
$
|
12.28
|
|
|
$
|
9.17
|
|
Discontinued operations
|
(0.02
|
)
|
|
(0.05
|
)
|
|
(0.02
|
)
|
|||
|
$
|
12.04
|
|
|
$
|
12.23
|
|
|
$
|
9.15
|
|
Diluted:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
12.03
|
|
|
$
|
12.28
|
|
|
$
|
9.15
|
|
Discontinued operations
|
(0.02
|
)
|
|
(0.05
|
)
|
|
(0.02
|
)
|
|||
|
$
|
12.01
|
|
|
$
|
12.23
|
|
|
$
|
9.13
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
4,690
|
|
|
$
|
4,877
|
|
|
$
|
3,837
|
|
Other comprehensive income (loss), net of tax—
|
|
|
|
|
|
||||||
Financial derivatives
|
54
|
|
|
(45
|
)
|
|
4
|
|
|||
Unrealized gains (losses) on available-for-sale debt securities
|
—
|
|
|
(1
|
)
|
|
6
|
|
|||
Unrealized gains on equity securities and equity securities held by equity investees
|
—
|
|
|
17
|
|
|
—
|
|
|||
Defined benefit pension and other postretirement benefit plans
|
30
|
|
|
77
|
|
|
(70
|
)
|
|||
Foreign currency translations
|
(92
|
)
|
|
178
|
|
|
(13
|
)
|
|||
Total other comprehensive income (loss), net of tax
|
(8
|
)
|
|
226
|
|
|
(73
|
)
|
|||
Comprehensive income
|
4,682
|
|
|
5,103
|
|
|
3,764
|
|
|||
Dividends on A. Schulman Special Stock
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
Comprehensive (income) loss attributable to non-controlling interests
|
—
|
|
|
2
|
|
|
(1
|
)
|
|||
Comprehensive income attributable to the Company shareholders
|
$
|
4,680
|
|
|
$
|
5,105
|
|
|
$
|
3,763
|
|
|
December 31,
|
||||||
Millions of dollars
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
332
|
|
|
$
|
1,523
|
|
Restricted cash
|
69
|
|
|
5
|
|
||
Short-term investments
|
892
|
|
|
1,307
|
|
||
Accounts receivable:
|
|
|
|
||||
Trade, net
|
3,355
|
|
|
3,359
|
|
||
Related parties
|
148
|
|
|
180
|
|
||
Inventories
|
4,515
|
|
|
4,217
|
|
||
Prepaid expenses and other current assets
|
1,255
|
|
|
1,147
|
|
||
Total current assets
|
10,566
|
|
|
11,738
|
|
||
Property, plant and equipment, net
|
12,477
|
|
|
10,997
|
|
||
Investments and long-term receivables:
|
|
|
|
||||
Investment in PO joint ventures
|
469
|
|
|
420
|
|
||
Equity investments
|
1,611
|
|
|
1,635
|
|
||
Other investments and long-term receivables
|
23
|
|
|
17
|
|
||
Goodwill
|
1,814
|
|
|
570
|
|
||
Intangible assets, net
|
965
|
|
|
568
|
|
||
Other assets
|
353
|
|
|
261
|
|
||
Total assets
|
$
|
28,278
|
|
|
$
|
26,206
|
|
|
December 31,
|
||||||
Millions of dollars, except shares and par value data
|
2018
|
|
2017
|
||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Current maturities of long-term debt
|
$
|
5
|
|
|
$
|
2
|
|
Short-term debt
|
885
|
|
|
68
|
|
||
Accounts payable:
|
|
|
|
||||
Trade
|
2,560
|
|
|
2,258
|
|
||
Related parties
|
527
|
|
|
637
|
|
||
Accrued liabilities
|
1,536
|
|
|
1,812
|
|
||
Total current liabilities
|
5,513
|
|
|
4,777
|
|
||
Long-term debt
|
8,497
|
|
|
8,549
|
|
||
Other liabilities
|
1,897
|
|
|
2,275
|
|
||
Deferred income taxes
|
1,975
|
|
|
1,655
|
|
||
Commitments and contingencies
|
|
|
|
||||
Redeemable non-controlling interests
|
116
|
|
|
—
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Ordinary shares, €0.04 par value, 1,275 million shares authorized, 375,696,661 and 394,512,054 shares outstanding, respectively
|
22
|
|
|
31
|
|
||
Additional paid-in capital
|
7,041
|
|
|
10,206
|
|
||
Retained earnings
|
6,763
|
|
|
15,746
|
|
||
Accumulated other comprehensive loss
|
(1,363
|
)
|
|
(1,285
|
)
|
||
Treasury stock, at cost, 24,513,619 and 183,928,109 ordinary shares, respectively
|
(2,206
|
)
|
|
(15,749
|
)
|
||
Total Company share of stockholders’ equity
|
10,257
|
|
|
8,949
|
|
||
Non-controlling interests
|
23
|
|
|
1
|
|
||
Total equity
|
10,280
|
|
|
8,950
|
|
||
Total liabilities, redeemable non-controlling interests and equity
|
$
|
28,278
|
|
|
$
|
26,206
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
4,690
|
|
|
$
|
4,877
|
|
|
$
|
3,837
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
1,241
|
|
|
1,174
|
|
|
1,064
|
|
|||
Amortization of debt-related costs
|
14
|
|
|
15
|
|
|
16
|
|
|||
Charges related to repayment of debt
|
—
|
|
|
49
|
|
|
—
|
|
|||
Share-based compensation
|
39
|
|
|
55
|
|
|
38
|
|
|||
Inventory valuation adjustment
|
—
|
|
|
—
|
|
|
29
|
|
|||
Equity investments—
|
|
|
|
|
|
||||||
Equity income
|
(289
|
)
|
|
(321
|
)
|
|
(367
|
)
|
|||
Distribution of earnings, net of tax
|
307
|
|
|
309
|
|
|
385
|
|
|||
Deferred income taxes
|
260
|
|
|
(587
|
)
|
|
357
|
|
|||
Gain on sales of business and equity investments
|
(36
|
)
|
|
(108
|
)
|
|
(84
|
)
|
|||
Changes in assets and liabilities that provided (used) cash:
|
|
|
|
|
|
||||||
Accounts receivable
|
433
|
|
|
(521
|
)
|
|
(383
|
)
|
|||
Inventories
|
(141
|
)
|
|
(237
|
)
|
|
123
|
|
|||
Accounts payable
|
(199
|
)
|
|
165
|
|
|
383
|
|
|||
Other, net
|
(848
|
)
|
|
336
|
|
|
208
|
|
|||
Net cash provided by operating activities
|
5,471
|
|
|
5,206
|
|
|
5,606
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Expenditures for property, plant and equipment
|
(2,105
|
)
|
|
(1,547
|
)
|
|
(2,243
|
)
|
|||
Acquisition of A. Schulman, net of cash acquired
|
(1,776
|
)
|
|
—
|
|
|
—
|
|
|||
Payments for repurchase agreements
|
—
|
|
|
(512
|
)
|
|
(674
|
)
|
|||
Proceeds from repurchase agreements
|
—
|
|
|
381
|
|
|
685
|
|
|||
Purchases of available-for-sale debt securities
|
(50
|
)
|
|
(653
|
)
|
|
(688
|
)
|
|||
Proceeds from sales and maturities of available-for-sale debt securities
|
423
|
|
|
499
|
|
|
674
|
|
|||
Purchases of held-to-maturity securities
|
—
|
|
|
—
|
|
|
(76
|
)
|
|||
Proceeds from maturities of held-to-maturity securities
|
—
|
|
|
75
|
|
|
—
|
|
|||
Purchases of equity securities
|
(64
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from sales and maturities of equity securities
|
97
|
|
|
—
|
|
|
—
|
|
|||
Net proceeds from sales of business and equity investments
|
37
|
|
|
155
|
|
|
209
|
|
|||
Proceeds from settlement of net investment hedges
|
1,108
|
|
|
609
|
|
|
1,295
|
|
|||
Payments for settlement of net investment hedges
|
(1,078
|
)
|
|
(658
|
)
|
|
(1,356
|
)
|
|||
Other, net
|
(151
|
)
|
|
(105
|
)
|
|
(127
|
)
|
|||
Net cash used in investing activities
|
(3,559
|
)
|
|
(1,756
|
)
|
|
(2,301
|
)
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Repurchases of Company ordinary shares
|
(1,854
|
)
|
|
(866
|
)
|
|
(2,938
|
)
|
|||
Dividends paid - common stock
|
(1,554
|
)
|
|
(1,415
|
)
|
|
(1,395
|
)
|
|||
Issuance of long-term debt
|
—
|
|
|
990
|
|
|
812
|
|
|||
Repayment of long-term debt
|
(394
|
)
|
|
(1,000
|
)
|
|
—
|
|
|||
Debt extinguishment costs
|
—
|
|
|
(65
|
)
|
|
—
|
|
|||
Payments of debt issuance costs
|
—
|
|
|
(8
|
)
|
|
(5
|
)
|
|||
Net proceeds from (repayments of) commercial paper
|
810
|
|
|
(493
|
)
|
|
177
|
|
|||
Other, net
|
(16
|
)
|
|
(2
|
)
|
|
—
|
|
|||
Net cash used in financing activities
|
(3,008
|
)
|
|
(2,859
|
)
|
|
(3,349
|
)
|
|||
Effect of exchange rate changes on cash
|
(31
|
)
|
|
59
|
|
|
(9
|
)
|
|||
(Decrease) increase in cash and cash equivalents and restricted cash
|
(1,127
|
)
|
|
650
|
|
|
(53
|
)
|
|||
Cash and cash equivalents and restricted cash at beginning of period
|
1,528
|
|
|
878
|
|
|
931
|
|
|||
Cash and cash equivalents and restricted cash at end of period
|
$
|
401
|
|
|
$
|
1,528
|
|
|
$
|
878
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
||||||
Interest paid, net of capitalized interest
|
$
|
333
|
|
|
$
|
333
|
|
|
$
|
313
|
|
Net income taxes paid
|
$
|
1,209
|
|
|
$
|
1,044
|
|
|
$
|
741
|
|
|
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, 2015
|
$
|
31
|
|
|
$
|
(12,086
|
)
|
|
$
|
10,202
|
|
|
$
|
9,841
|
|
|
$
|
(1,438
|
)
|
|
$
|
6,550
|
|
|
$
|
24
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
3,836
|
|
|
—
|
|
|
3,836
|
|
|
1
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
(73
|
)
|
|
—
|
|
|||||||
Share-based compensation
|
—
|
|
|
55
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|||||||
Dividends- common stock ($3.33 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,395
|
)
|
|
—
|
|
|
(1,395
|
)
|
|
—
|
|
|||||||
Repurchases of Company ordinary shares
|
—
|
|
|
(2,914
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,914
|
)
|
|
—
|
|
|||||||
Balance, December 31, 2016
|
$
|
31
|
|
|
$
|
(14,945
|
)
|
|
$
|
10,191
|
|
|
$
|
12,282
|
|
|
$
|
(1,511
|
)
|
|
$
|
6,048
|
|
|
$
|
25
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
4,879
|
|
|
—
|
|
|
4,879
|
|
|
(2
|
)
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|
226
|
|
|
—
|
|
|||||||
Share-based compensation
|
—
|
|
|
41
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|||||||
Dividends- common stock ($3.55 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,415
|
)
|
|
—
|
|
|
(1,415
|
)
|
|
—
|
|
|||||||
Repurchases of Company ordinary shares
|
—
|
|
|
(845
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(845
|
)
|
|
—
|
|
|||||||
Purchase of non-controlling interests
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(22
|
)
|
|||||||
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
|
—
|
|
|
—
|
|
|
—
|
|
|
4,690
|
|
|
—
|
|
|
4,690
|
|
|
—
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
|
—
|
|
|||||||
Share-based compensation
|
—
|
|
|
37
|
|
|
28
|
|
|
(2
|
)
|
|
—
|
|
|
63
|
|
|
—
|
|
|||||||
Dividends- common stock ($4.00 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,554
|
)
|
|
—
|
|
|
(1,554
|
)
|
|
—
|
|
|||||||
Dividends- A. Schulman Special Stock ($15.00 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||||||
Repurchases of Company ordinary shares
|
—
|
|
|
(1,878
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,878
|
)
|
|
—
|
|
|||||||
Purchase of non-controlling interests
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|||||||
Cancellation of Treasury shares
|
(9
|
)
|
|
15,384
|
|
|
(3,165
|
)
|
|
(12,210
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Acquisition of A. Schulman
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||||
Balance, December 31, 2018
|
$
|
22
|
|
|
$
|
(2,206
|
)
|
|
$
|
7,041
|
|
|
$
|
6,763
|
|
|
$
|
(1,363
|
)
|
|
$
|
10,257
|
|
|
$
|
23
|
|
•
|
Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;
|
•
|
Income and expenses for each income statement are translated at monthly average exchange rates; and
|
•
|
All resulting exchange differences are recognized as a separate component within Other comprehensive income (foreign currency translation).
|
Millions of dollars
|
|
||
Cash and cash equivalents
|
$
|
71
|
|
Restricted cash
|
10
|
|
|
Accounts receivable
|
407
|
|
|
Prepaid expenses and other current assets
|
100
|
|
|
Inventories
|
300
|
|
|
Property, plant and equipment
|
448
|
|
|
Equity investments
|
16
|
|
|
Goodwill
|
1,271
|
|
|
Intangible assets
|
505
|
|
|
Other assets
|
58
|
|
|
Total assets
|
$
|
3,186
|
|
|
|
||
Current maturities of long-term debt
|
$
|
397
|
|
Accounts payable
|
317
|
|
|
Accrued liabilities
|
109
|
|
|
Other liabilities
|
164
|
|
|
Deferred income taxes
|
112
|
|
|
Total liabilities
|
1,099
|
|
|
Redeemable non-controlling interests
|
125
|
|
|
Non-controlling interests
|
22
|
|
|
Total liabilities, redeemable non-controlling interests and non-controlling interests
|
$
|
1,246
|
|
|
|
||
Total net assets acquired
|
$
|
1,940
|
|
Millions of dollars
|
|
||
Land
|
$
|
56
|
|
Major manufacturing equipment
|
211
|
|
|
Buildings
|
141
|
|
|
Light equipment and instrumentation
|
13
|
|
|
Office furniture
|
9
|
|
|
Information system equipment
|
2
|
|
|
Construction in progress
|
16
|
|
|
Total
|
$
|
448
|
|
Millions of dollars
|
|
Fair Value
|
|
Weighted Average Life (Years)
|
|
Useful Life (Years)
|
||
Customer relationships
|
|
$
|
300
|
|
|
15
|
|
15
|
Trade name and trademarks
|
|
104
|
|
|
5
|
|
5
|
|
Know-how
|
|
84
|
|
|
8
|
|
5-8
|
|
Various contracts
|
|
17
|
|
|
1
|
|
1-2
|
|
Total
|
|
$
|
505
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues:
|
|
|
|
|
|
||||||
Olefins & co-products
|
$
|
3,679
|
|
|
$
|
4,304
|
|
|
$
|
3,215
|
|
Polyethylene
|
7,439
|
|
|
7,368
|
|
|
6,903
|
|
|||
Polypropylene
|
5,703
|
|
|
5,005
|
|
|
4,414
|
|
|||
PO & derivatives
|
2,530
|
|
|
2,204
|
|
|
1,852
|
|
|||
Oxyfuels and related products
|
3,399
|
|
|
3,022
|
|
|
2,676
|
|
|||
Intermediate chemicals
|
3,416
|
|
|
3,051
|
|
|
2,483
|
|
|||
Compounding and solutions
|
3,091
|
|
|
2,139
|
|
|
1,910
|
|
|||
Advanced polymers
|
930
|
|
|
783
|
|
|
692
|
|
|||
Refined products
|
8,221
|
|
|
6,165
|
|
|
4,559
|
|
|||
Other
|
596
|
|
|
443
|
|
|
479
|
|
|||
Total
|
$
|
39,004
|
|
|
$
|
34,484
|
|
|
$
|
29,183
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Sales and other operating revenues:
|
|
|
|
|
|
||||||
United States
|
$
|
18,671
|
|
|
$
|
16,618
|
|
|
$
|
13,962
|
|
Germany
|
2,949
|
|
|
2,746
|
|
|
2,474
|
|
|||
Mexico
|
2,308
|
|
|
1,504
|
|
|
1,026
|
|
|||
Italy
|
1,582
|
|
|
1,352
|
|
|
1,203
|
|
|||
France
|
1,460
|
|
|
1,306
|
|
|
1,055
|
|
|||
Japan
|
1,257
|
|
|
1,185
|
|
|
934
|
|
|||
China
|
1,137
|
|
|
1,024
|
|
|
939
|
|
|||
The Netherlands
|
1,050
|
|
|
1,069
|
|
|
727
|
|
|||
Other
|
8,590
|
|
|
7,680
|
|
|
6,863
|
|
|||
Total
|
$
|
39,004
|
|
|
$
|
34,484
|
|
|
$
|
29,183
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
The Company billed related parties for:
|
|
|
|
|
|
||||||
Sales of products—
|
|
|
|
|
|
||||||
Joint venture partners
|
$
|
878
|
|
|
$
|
779
|
|
|
$
|
729
|
|
Shared service agreements—
|
|
|
|
|
|
||||||
Joint venture partners
|
9
|
|
|
16
|
|
|
18
|
|
|||
Related parties billed the Company for:
|
|
|
|
|
|
||||||
Sales of products—
|
|
|
|
|
|
||||||
Joint venture partners
|
$
|
2,999
|
|
|
$
|
2,759
|
|
|
$
|
2,402
|
|
Shared service agreements—
|
|
|
|
|
|
||||||
Joint venture partners
|
70
|
|
|
75
|
|
|
71
|
|
Millions of dollars
|
2018
|
|
2017
|
||||
Finished goods
|
$
|
3,066
|
|
|
$
|
2,932
|
|
Work-in-process
|
138
|
|
|
142
|
|
||
Raw materials and supplies
|
1,311
|
|
|
1,143
|
|
||
Total inventories
|
$
|
4,515
|
|
|
$
|
4,217
|
|
Millions of dollars
|
Estimated
Useful Lives
(in Years)
|
|
2018
|
|
2017
|
||||
Land
|
|
|
$
|
364
|
|
|
$
|
313
|
|
Major manufacturing equipment
|
25
|
|
10,684
|
|
|
10,029
|
|
||
Buildings
|
30
|
|
924
|
|
|
826
|
|
||
Light equipment and instrumentation
|
5 - 20
|
|
2,639
|
|
|
2,141
|
|
||
Office furniture
|
15
|
|
25
|
|
|
16
|
|
||
Major turnarounds
|
4 - 7
|
|
1,750
|
|
|
1,765
|
|
||
Information system equipment
|
3 - 5
|
|
60
|
|
|
59
|
|
||
Construction in progress
|
|
|
2,255
|
|
|
1,421
|
|
||
Total property, plant and equipment
|
|
|
18,701
|
|
|
16,570
|
|
||
Less accumulated depreciation
|
|
|
(6,224
|
)
|
|
(5,573
|
)
|
||
Property, plant and equipment, net
|
|
|
$
|
12,477
|
|
|
$
|
10,997
|
|
|
|
2018
|
|
2017
|
||||||||||||||||||||
Millions of dollars
|
|
Cost
|
|
Accumulated
Amortization
|
|
Net
|
|
Cost
|
|
Accumulated
Amortization
|
|
Net
|
||||||||||||
Emission allowances
|
|
$
|
807
|
|
|
$
|
(531
|
)
|
|
$
|
276
|
|
|
$
|
786
|
|
|
$
|
(468
|
)
|
|
$
|
318
|
|
Various contracts
|
|
508
|
|
|
(329
|
)
|
|
179
|
|
|
552
|
|
|
(356
|
)
|
|
196
|
|
||||||
Customer relationships
|
|
300
|
|
|
(8
|
)
|
|
292
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
In-process research and development costs
|
|
111
|
|
|
(75
|
)
|
|
36
|
|
|
117
|
|
|
(70
|
)
|
|
47
|
|
||||||
Trade name and trademarks
|
|
104
|
|
|
(7
|
)
|
|
97
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Know-how
|
|
84
|
|
|
(4
|
)
|
|
80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Software costs
|
|
64
|
|
|
(59
|
)
|
|
5
|
|
|
73
|
|
|
(66
|
)
|
|
7
|
|
||||||
Total intangible assets
|
|
$
|
1,978
|
|
|
$
|
(1,013
|
)
|
|
$
|
965
|
|
|
$
|
1,528
|
|
|
$
|
(960
|
)
|
|
$
|
568
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Property, plant and equipment
|
$
|
1,075
|
|
|
$
|
1,023
|
|
|
$
|
920
|
|
Investment in PO joint ventures
|
41
|
|
|
41
|
|
|
40
|
|
|||
Emission allowances
|
63
|
|
|
67
|
|
|
62
|
|
|||
Various contracts
|
31
|
|
|
27
|
|
|
27
|
|
|||
Customer relationships
|
8
|
|
|
—
|
|
|
—
|
|
|||
In-process research and development costs
|
7
|
|
|
9
|
|
|
8
|
|
|||
Trade name and trademarks
|
7
|
|
|
—
|
|
|
—
|
|
|||
Know-how
|
4
|
|
|
—
|
|
|
—
|
|
|||
Software costs
|
5
|
|
|
7
|
|
|
7
|
|
|||
Total depreciation and amortization
|
$
|
1,241
|
|
|
$
|
1,174
|
|
|
$
|
1,064
|
|
|
Year Ended December 31,
|
||||||
Millions of dollars
|
2018
|
|
2017
|
||||
Beginning balance
|
$
|
58
|
|
|
$
|
77
|
|
Payments
|
(2
|
)
|
|
(3
|
)
|
||
Changes in estimates
|
2
|
|
|
(26
|
)
|
||
Accretion expense
|
2
|
|
|
2
|
|
||
Effects of exchange rate changes
|
(2
|
)
|
|
8
|
|
||
Ending balance
|
$
|
58
|
|
|
$
|
58
|
|
Millions of dollars
|
O&P –
Americas
|
|
O&P –
EAI
|
|
I&D
|
|
APS
|
|
Technology
|
|
Total
|
||||||||||||
December 31, 2016
|
$
|
162
|
|
|
$
|
98
|
|
|
$
|
219
|
|
|
$
|
41
|
|
|
$
|
8
|
|
|
$
|
528
|
|
Foreign currency translation adjustments
|
—
|
|
|
23
|
|
|
18
|
|
|
—
|
|
|
1
|
|
|
42
|
|
||||||
December 31, 2017
|
$
|
162
|
|
|
$
|
121
|
|
|
$
|
237
|
|
|
$
|
41
|
|
|
$
|
9
|
|
|
$
|
570
|
|
Acquisition of A. Schulman
|
—
|
|
|
—
|
|
|
—
|
|
|
1,259
|
|
|
—
|
|
|
1,259
|
|
||||||
Measurement period adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||||
Foreign currency translation adjustments
|
—
|
|
|
(7
|
)
|
|
(8
|
)
|
|
(12
|
)
|
|
—
|
|
|
(27
|
)
|
||||||
December 31, 2018
|
$
|
162
|
|
|
$
|
114
|
|
|
$
|
229
|
|
|
$
|
1,300
|
|
|
$
|
9
|
|
|
$
|
1,814
|
|
Millions of dollars
|
U.S. PO
Joint Venture
|
|
European PO
Joint Venture
|
|
Total PO
Joint Ventures
|
||||||
Investments in PO joint ventures—January 1, 2018
|
$
|
310
|
|
|
$
|
110
|
|
|
$
|
420
|
|
Cash contributions
|
85
|
|
|
10
|
|
|
95
|
|
|||
Depreciation and amortization
|
(32
|
)
|
|
(9
|
)
|
|
(41
|
)
|
|||
Effect of exchange rate changes
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|||
Investments in PO joint ventures—December 31, 2018
|
$
|
363
|
|
|
$
|
106
|
|
|
$
|
469
|
|
|
|
|
|
|
|
||||||
Investments in PO joint ventures—January 1, 2017
|
$
|
316
|
|
|
$
|
99
|
|
|
$
|
415
|
|
Cash contributions
|
26
|
|
|
6
|
|
|
32
|
|
|||
Depreciation and amortization
|
(32
|
)
|
|
(9
|
)
|
|
(41
|
)
|
|||
Effect of exchange rate changes
|
—
|
|
|
14
|
|
|
14
|
|
|||
Investments in PO joint ventures—December 31, 2017
|
$
|
310
|
|
|
$
|
110
|
|
|
$
|
420
|
|
|
Year Ended December 31,
|
||||||
Millions of dollars
|
2018
|
|
2017
|
||||
Beginning balance
|
$
|
1,635
|
|
|
$
|
1,575
|
|
Income from equity investments
|
289
|
|
|
321
|
|
||
Distribution of earnings, net of tax
|
(307
|
)
|
|
(309
|
)
|
||
Business combination
|
16
|
|
|
—
|
|
||
Sale of equity investments
|
—
|
|
|
(35
|
)
|
||
Unrealized gain on available-for-sale securities
|
—
|
|
|
19
|
|
||
Currency exchange effects
|
(28
|
)
|
|
68
|
|
||
Other
|
6
|
|
|
(4
|
)
|
||
Ending balance
|
$
|
1,611
|
|
|
$
|
1,635
|
|
|
Year Ended December 31,
|
||||||
Millions of dollars
|
2018
|
|
2017
|
||||
Current assets
|
$
|
2,824
|
|
|
$
|
2,844
|
|
Noncurrent assets
|
4,625
|
|
|
4,541
|
|
||
Total assets
|
7,449
|
|
|
7,385
|
|
||
Current liabilities
|
1,485
|
|
|
1,607
|
|
||
Noncurrent liabilities
|
1,592
|
|
|
1,418
|
|
||
Net assets
|
$
|
4,372
|
|
|
$
|
4,360
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues
|
$
|
7,449
|
|
|
$
|
6,632
|
|
|
$
|
6,608
|
|
Cost of sales
|
(5,899
|
)
|
|
(5,119
|
)
|
|
(4,933
|
)
|
|||
Gross profit
|
1,550
|
|
|
1,513
|
|
|
1,675
|
|
|||
Net operating expenses
|
(310
|
)
|
|
(223
|
)
|
|
(229
|
)
|
|||
Operating income
|
1,240
|
|
|
1,290
|
|
|
1,446
|
|
|||
Interest income
|
6
|
|
|
7
|
|
|
8
|
|
|||
Interest expense
|
(70
|
)
|
|
(74
|
)
|
|
(79
|
)
|
|||
Foreign currency translation
|
1
|
|
|
11
|
|
|
(13
|
)
|
|||
Other income, net
|
25
|
|
|
11
|
|
|
23
|
|
|||
Income before income taxes
|
1,202
|
|
|
1,245
|
|
|
1,385
|
|
|||
Provision for income taxes
|
(260
|
)
|
|
(153
|
)
|
|
(303
|
)
|
|||
Net income
|
$
|
942
|
|
|
$
|
1,092
|
|
|
$
|
1,082
|
|
Millions of dollars
|
2018
|
|
2017
|
||||
Loans receivable
|
$
|
544
|
|
|
$
|
570
|
|
Renewable identification numbers
|
65
|
|
|
117
|
|
||
Advances to suppliers
|
57
|
|
|
35
|
|
||
Income tax receivable
|
169
|
|
|
29
|
|
||
VAT receivables
|
218
|
|
|
184
|
|
||
Prepaid insurance
|
25
|
|
|
25
|
|
||
Financial derivatives
|
80
|
|
|
66
|
|
||
Other
|
97
|
|
|
121
|
|
||
Total prepaid expenses and other current assets
|
$
|
1,255
|
|
|
$
|
1,147
|
|
Millions of dollars
|
2018
|
|
2017
|
||||
Deferred tax assets
|
$
|
31
|
|
|
$
|
90
|
|
Debt issuance costs
|
12
|
|
|
15
|
|
||
Company-owned life insurance
|
62
|
|
|
56
|
|
||
Derivative contracts
|
118
|
|
|
26
|
|
||
Pension assets
|
39
|
|
|
33
|
|
||
Other
|
91
|
|
|
41
|
|
||
Total other assets
|
$
|
353
|
|
|
$
|
261
|
|
Millions of dollars
|
2018
|
|
2017
|
||||
Payroll and benefits
|
$
|
534
|
|
|
$
|
442
|
|
Renewable identification numbers
|
72
|
|
|
130
|
|
||
Product sales rebates
|
163
|
|
|
166
|
|
||
Taxes other than income taxes
|
186
|
|
|
199
|
|
||
Income taxes
|
16
|
|
|
386
|
|
||
Interest
|
154
|
|
|
151
|
|
||
Deferred revenues
|
128
|
|
|
61
|
|
||
Other
|
283
|
|
|
277
|
|
||
Total accrued liabilities
|
$
|
1,536
|
|
|
$
|
1,812
|
|
Millions of dollars
|
2018
|
|
2017
|
||||
Senior Notes due 2019, $1,000 million, 5.0% ($1 million of debt issuance cost)
|
$
|
988
|
|
|
$
|
961
|
|
Senior Notes due 2021, $1,000 million, 6.0% ($5 million of debt issuance cost)
|
975
|
|
|
981
|
|
||
Senior Notes due 2024, $1,000 million, 5.75% ($7 million of debt issuance cost)
|
993
|
|
|
992
|
|
||
Senior Notes due 2055, $1,000 million, 4.625% ($16 million of discount; $11 million of debt issuance cost)
|
973
|
|
|
973
|
|
||
Guaranteed Notes due 2022, €750 million, 1.875% ($2 million of discount; $2 million of debt issuance cost)
|
855
|
|
|
894
|
|
||
Guaranteed Notes due 2023, $750 million, 4.0% ($5 million of discount; $3 million of debt issuance cost)
|
742
|
|
|
740
|
|
||
Guaranteed Notes due 2027, $1,000 million, 3.5% ($8 million of discount; $7 million of debt issuance cost)
|
964
|
|
|
984
|
|
||
Guaranteed Notes due 2027, $300 million, 8.1%
|
300
|
|
|
300
|
|
||
Guaranteed Notes due 2043, $750 million, 5.25% ($21 million of discount; $7 million of debt issuance cost)
|
722
|
|
|
722
|
|
||
Guaranteed Notes due 2044, $1,000 million, 4.875% ($11 million of discount; $9 million of debt issuance cost)
|
980
|
|
|
979
|
|
||
Other
|
10
|
|
|
25
|
|
||
Total
|
8,502
|
|
|
8,551
|
|
||
Less current maturities
|
(5
|
)
|
|
(2
|
)
|
||
Long-term debt
|
$
|
8,497
|
|
|
$
|
8,549
|
|
Millions of dollars
|
Inception
Year
|
|
Gains (Losses)
|
|
Cumulative Fair Value Hedging Adjustments Included in Carrying Amount of Debt
|
|||||||||||||
Year Ended December 31,
|
Year Ended December 31,
|
|||||||||||||||||
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
Senior Notes due 2019, 5.0%
|
2014
|
|
$
|
(25
|
)
|
|
$
|
(48
|
)
|
|
$
|
11
|
|
|
$
|
36
|
|
|
Senior Notes due 2021, 6.0%
|
2016
|
|
8
|
|
|
9
|
|
|
20
|
|
|
12
|
|
|||||
Guaranteed Notes due 2027, 3.5%
|
2017
|
|
22
|
|
|
(1
|
)
|
|
21
|
|
|
(1
|
)
|
|||||
Guaranteed Notes due 2022, 1.875%
|
2018
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||||
Total
|
|
|
$
|
4
|
|
|
$
|
(40
|
)
|
|
$
|
51
|
|
|
$
|
47
|
|
Millions of dollars
|
2018
|
|
2017
|
||||
$2,500 million Senior Revolving Credit Facility
|
$
|
—
|
|
|
$
|
—
|
|
$900 million U.S. Receivables Facility
|
—
|
|
|
—
|
|
||
Commercial paper
|
809
|
|
|
—
|
|
||
Precious metal financings
|
71
|
|
|
64
|
|
||
Other
|
5
|
|
|
4
|
|
||
Total short-term debt
|
$
|
885
|
|
|
$
|
68
|
|
Millions of dollars
|
|
||
2019
|
$
|
365
|
|
2020
|
288
|
|
|
2021
|
256
|
|
|
2022
|
236
|
|
|
2023
|
204
|
|
|
Thereafter
|
1,126
|
|
|
Total minimum lease payments
|
$
|
2,475
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
|
||||||||||||
|
Notional
Amount
|
|
Fair
Value
|
|
Notional
Amount
|
|
Fair
Value
|
|
Balance Sheet
Classification
|
||||||||
Millions of dollars
|
|||||||||||||||||
Assets—
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodities
|
$
|
472
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Prepaid expenses and other current assets
|
Foreign currency
|
—
|
|
|
27
|
|
|
—
|
|
|
26
|
|
|
Prepaid expenses and other current assets
|
||||
Foreign currency
|
2,000
|
|
|
117
|
|
|
2,000
|
|
|
25
|
|
|
Other assets
|
||||
Interest rates
|
600
|
|
|
33
|
|
|
—
|
|
|
20
|
|
|
Prepaid expenses and other current assets
|
||||
Interest rates
|
143
|
|
|
1
|
|
|
650
|
|
|
1
|
|
|
Other assets
|
||||
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodities
|
35
|
|
|
5
|
|
|
77
|
|
|
20
|
|
|
Prepaid expenses and other current assets
|
||||
Foreign currency
|
599
|
|
|
3
|
|
|
19
|
|
|
—
|
|
|
Prepaid expenses and other current assets
|
||||
Non-derivatives:
|
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale debt securities
|
567
|
|
|
567
|
|
|
960
|
|
|
960
|
|
|
Short-term investments
|
||||
Equity securities
|
322
|
|
|
325
|
|
|
350
|
|
|
347
|
|
|
Short-term investments
|
||||
Total
|
$
|
4,738
|
|
|
$
|
1,090
|
|
|
$
|
4,056
|
|
|
$
|
1,399
|
|
|
|
Liabilities—
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodities
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
97
|
|
|
$
|
8
|
|
|
Accrued liabilities
|
Commodities
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
Other liabilities
|
||||
Foreign currency
|
—
|
|
|
17
|
|
|
139
|
|
|
29
|
|
|
Accrued liabilities
|
||||
Foreign currency
|
950
|
|
|
75
|
|
|
950
|
|
|
140
|
|
|
Other liabilities
|
||||
Interest rates
|
1,400
|
|
|
16
|
|
|
—
|
|
|
5
|
|
|
Accrued liabilities
|
||||
Interest rates
|
2,500
|
|
|
45
|
|
|
3,350
|
|
|
58
|
|
|
Other liabilities
|
||||
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodities
|
63
|
|
|
14
|
|
|
108
|
|
|
29
|
|
|
Accrued liabilities
|
||||
Foreign currency
|
1,165
|
|
|
7
|
|
|
995
|
|
|
11
|
|
|
Accrued liabilities
|
||||
Non-derivatives:
|
|
|
|
|
|
|
|
|
|
||||||||
Performance share awards
|
29
|
|
|
29
|
|
|
23
|
|
|
23
|
|
|
Accrued liabilities
|
||||
Performance share awards
|
—
|
|
|
—
|
|
|
27
|
|
|
27
|
|
|
Other liabilities
|
||||
Total
|
$
|
6,111
|
|
|
$
|
203
|
|
|
$
|
5,694
|
|
|
$
|
330
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
Millions of dollars
|
|||||||||||||||
Non-derivatives:
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Short-term loans receivable
|
$
|
544
|
|
|
$
|
544
|
|
|
$
|
570
|
|
|
$
|
570
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Short-term debt
|
$
|
70
|
|
|
$
|
77
|
|
|
$
|
64
|
|
|
$
|
75
|
|
Long-term debt
|
8,492
|
|
|
8,476
|
|
|
8,526
|
|
|
9,442
|
|
||||
Total
|
$
|
8,562
|
|
|
$
|
8,553
|
|
|
$
|
8,590
|
|
|
$
|
9,517
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
|
||||
Millions of dollars
|
Notional
Value
|
|
Notional
Value
|
|
Expiration
Date
|
||||
Foreign currency
|
$
|
2,300
|
|
|
$
|
2,300
|
|
|
2021 to 2027
|
Interest rates
|
1,500
|
|
|
1,000
|
|
|
2019 to 2021
|
||
Commodities
|
476
|
|
|
102
|
|
|
2019
|
|
Effect of Financial Instruments
|
||||||||||||
|
Year Ended December 31, 2018
|
||||||||||||
Millions of dollars
|
Gain (Loss)
Recognized
in AOCI
|
|
Gain (Loss)
Reclassified
from AOCI
to Income
|
|
Additional
Gain (Loss)
Recognized
in Income
|
|
Income Statement
Classification
|
||||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
||||||
Commodities
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Sales and other operating revenues
|
Commodities
|
(30
|
)
|
|
(11
|
)
|
|
—
|
|
|
Cost of sales
|
|||
Foreign currency
|
190
|
|
|
(100
|
)
|
|
68
|
|
|
Other income, net; Interest expense
|
|||
Interest rates
|
43
|
|
|
(1
|
)
|
|
(30
|
)
|
|
Interest expense
|
|||
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
||||||
Commodities
|
—
|
|
|
—
|
|
|
3
|
|
|
Sales and other operating revenues
|
|||
Commodities
|
—
|
|
|
—
|
|
|
1
|
|
|
Cost of sales
|
|||
Foreign currency
|
—
|
|
|
—
|
|
|
43
|
|
|
Other income, net
|
|||
Non-derivatives designated as hedges:
|
|
|
|
|
|
|
|
||||||
Long-term debt
|
41
|
|
|
—
|
|
|
—
|
|
|
Other income, net
|
|||
Total
|
$
|
304
|
|
|
$
|
(112
|
)
|
|
$
|
85
|
|
|
|
|
Effect of Financial Instruments
|
||||||||||||
|
Year Ended December 31, 2017
|
||||||||||||
Millions of dollars
|
Gain (Loss)
Recognized
in AOCI
|
|
Gain (Loss)
Reclassified
from AOCI
to Income
|
|
Additional
Gain (Loss)
Recognized
in Income
|
|
Income Statement
Classification
|
||||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
||||||
Commodities
|
$
|
(11
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Cost of sales
|
Foreign currency
|
(466
|
)
|
|
265
|
|
|
42
|
|
|
Other income, net; Interest expense
|
|||
Interest rates
|
(25
|
)
|
|
(1
|
)
|
|
2
|
|
|
Interest expense
|
|||
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
||||||
Commodities
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
Sales and other operating revenues
|
|||
Commodities
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
Cost of sales
|
|||
Foreign currency
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
Other income, net
|
|||
Non-derivatives designated as hedges:
|
|
|
|
|
|
|
|
||||||
Long-term debt
|
(109
|
)
|
|
—
|
|
|
—
|
|
|
Other income, net
|
|||
Total
|
$
|
(611
|
)
|
|
$
|
264
|
|
|
$
|
(20
|
)
|
|
|
|
Effect of Financial Instruments
|
||||||||||||
|
Year Ended December 31, 2016
|
||||||||||||
Millions of dollars
|
Gain (Loss)
Recognized
in AOCI
|
|
Gain (Loss)
Reclassified
from AOCI
to Income
|
|
Additional
Gain (Loss)
Recognized
in Income
|
|
Income Statement
Classification
|
||||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
||||||
Commodities
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Cost of sales
|
Foreign currency
|
(30
|
)
|
|
(63
|
)
|
|
46
|
|
|
Other income, net; Interest expense
|
|||
Interest rates
|
(17
|
)
|
|
—
|
|
|
8
|
|
|
Interest expense
|
|||
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
||||||
Commodities
|
—
|
|
|
—
|
|
|
12
|
|
|
Sales and other operating revenues
|
|||
Commodities
|
—
|
|
|
—
|
|
|
6
|
|
|
Cost of sales
|
|||
Foreign currency
|
—
|
|
|
—
|
|
|
16
|
|
|
Other income, net
|
|||
Non-derivatives designated as hedges:
|
|
|
|
|
|
|
|
||||||
Long-term debt
|
58
|
|
|
—
|
|
|
—
|
|
|
Other income, net
|
|||
Total
|
$
|
14
|
|
|
$
|
(63
|
)
|
|
$
|
88
|
|
|
|
|
December 31, 2018
|
||||||||||||||
Millions of dollars
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
||||||||
Bonds
|
$
|
567
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
567
|
|
Total available-for-sale debt securities
|
$
|
567
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
567
|
|
|
December 31, 2017
|
||||||||||||||
Millions of dollars
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
$
|
180
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
180
|
|
Bonds
|
630
|
|
|
—
|
|
|
—
|
|
|
630
|
|
||||
Certificates of deposit
|
150
|
|
|
—
|
|
|
—
|
|
|
150
|
|
||||
Limited partnership investments
|
350
|
|
|
2
|
|
|
(5
|
)
|
|
347
|
|
||||
Total available-for-sale securities
|
$
|
1,310
|
|
|
$
|
2
|
|
|
$
|
(5
|
)
|
|
$
|
1,307
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Proceeds from maturities of securities
|
$
|
423
|
|
|
$
|
499
|
|
|
$
|
674
|
|
|
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
|
|
|
$
|
—
|
|
|
December 31, 2017
|
||||||||||||||
|
Less than 12 months
|
|
Greater than 12 months
|
||||||||||||
Millions of dollars
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Limited partnership investments
|
$
|
117
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
December 31, 2016
|
||||||||||||||
|
Less than 12 months
|
|
Greater than 12 months
|
||||||||||||
Millions of dollars
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Limited partnership investments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
105
|
|
|
$
|
(3
|
)
|
Millions of dollars
|
|
||||||||
Net gains recognized during the period
|
$
|
11
|
|
||||||
Less: Net gains recognized during the period on securities sold
|
5
|
|
|||||||
Unrealized gains recognized during the period
|
$
|
6
|
|
|
Year Ended December 31,
|
||||||||||||||
|
2018
|
|
2017
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
||||||||
Benefit obligation, beginning of period
|
$
|
1,924
|
|
|
$
|
1,511
|
|
|
$
|
1,846
|
|
|
$
|
1,491
|
|
Service cost
|
51
|
|
|
35
|
|
|
47
|
|
|
39
|
|
||||
Interest cost
|
60
|
|
|
32
|
|
|
60
|
|
|
23
|
|
||||
Actuarial loss (gain)
|
(147
|
)
|
|
23
|
|
|
104
|
|
|
(174
|
)
|
||||
Plan amendments
|
—
|
|
|
4
|
|
|
—
|
|
|
12
|
|
||||
Benefits paid
|
(129
|
)
|
|
(38
|
)
|
|
(133
|
)
|
|
(31
|
)
|
||||
Participant contributions
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Settlement
|
(10
|
)
|
|
(20
|
)
|
|
—
|
|
|
(30
|
)
|
||||
Business combination
|
3
|
|
|
192
|
|
|
—
|
|
|
—
|
|
||||
Foreign exchange effects
|
—
|
|
|
(81
|
)
|
|
—
|
|
|
180
|
|
||||
Benefit obligation, end of period
|
1,752
|
|
|
1,659
|
|
|
1,924
|
|
|
1,511
|
|
||||
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets, beginning of period
|
1,680
|
|
|
852
|
|
|
1,571
|
|
|
824
|
|
||||
Actual return on plan assets
|
(37
|
)
|
|
18
|
|
|
195
|
|
|
(60
|
)
|
||||
Company contributions
|
44
|
|
|
56
|
|
|
47
|
|
|
56
|
|
||||
Benefits paid
|
(129
|
)
|
|
(38
|
)
|
|
(133
|
)
|
|
(31
|
)
|
||||
Participant contributions
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Settlement
|
(10
|
)
|
|
(20
|
)
|
|
—
|
|
|
(30
|
)
|
||||
Business combination
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
||||
Foreign exchange effects
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
92
|
|
||||
Fair value of plan assets, end of period
|
1,548
|
|
|
871
|
|
|
1,680
|
|
|
852
|
|
||||
Funded status of continuing operations, end of period
|
$
|
(204
|
)
|
|
$
|
(788
|
)
|
|
$
|
(244
|
)
|
|
$
|
(659
|
)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Amounts recognized in the Consolidated Balance Sheets consist of:
|
|
|
|
|
|
|
|
||||||||
Prepaid benefit cost, long-term
|
$
|
10
|
|
|
$
|
29
|
|
|
$
|
8
|
|
|
$
|
25
|
|
Accrued benefit liability, current
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(24
|
)
|
||||
Accrued benefit liability, long-term
|
(214
|
)
|
|
(790
|
)
|
|
(252
|
)
|
|
(660
|
)
|
||||
Funded status of continuing operations, end of period
|
$
|
(204
|
)
|
|
$
|
(788
|
)
|
|
$
|
(244
|
)
|
|
$
|
(659
|
)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Amounts recognized in Accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
||||||||
Actuarial and investment loss
|
$
|
374
|
|
|
$
|
251
|
|
|
$
|
385
|
|
|
$
|
234
|
|
Prior service cost
|
2
|
|
|
11
|
|
|
2
|
|
|
8
|
|
||||
Balance, end of period
|
$
|
376
|
|
|
$
|
262
|
|
|
$
|
387
|
|
|
$
|
242
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Accumulated benefit obligation for defined benefit plans
|
$
|
1,708
|
|
|
$
|
1,528
|
|
|
$
|
1,887
|
|
|
$
|
1,406
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Projected benefit obligations
|
$
|
1,618
|
|
|
$
|
1,456
|
|
|
$
|
1,776
|
|
|
$
|
1,285
|
|
Fair value of assets
|
1,404
|
|
|
639
|
|
|
1,524
|
|
|
601
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Accumulated benefit obligations
|
$
|
1,578
|
|
|
$
|
904
|
|
|
$
|
1,742
|
|
|
$
|
1,190
|
|
Fair value of assets
|
1,404
|
|
|
198
|
|
|
1,524
|
|
|
601
|
|
|
U.S. Plans
|
||||||||||
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Net Periodic Pension Cost:
|
|
|
|
|
|
||||||
Service cost
|
$
|
51
|
|
|
$
|
47
|
|
|
$
|
44
|
|
Interest cost
|
60
|
|
|
60
|
|
|
88
|
|
|||
Actual return on plan assets
|
37
|
|
|
(195
|
)
|
|
(100
|
)
|
|||
Less—return in excess of (less than) expected return
|
(159
|
)
|
|
74
|
|
|
(39
|
)
|
|||
Expected return on plan assets
|
(122
|
)
|
|
(121
|
)
|
|
(139
|
)
|
|||
Settlement loss
|
2
|
|
|
—
|
|
|
58
|
|
|||
Prior service cost amortization
|
—
|
|
|
1
|
|
|
1
|
|
|||
Actuarial and investment loss amortization
|
21
|
|
|
20
|
|
|
20
|
|
|||
Net periodic benefit cost
|
$
|
12
|
|
|
$
|
7
|
|
|
$
|
72
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
Non-U.S. Plans
|
||||||||||
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Net Periodic Pension Cost:
|
|
|
|
|
|
||||||
Service cost
|
$
|
35
|
|
|
$
|
39
|
|
|
$
|
32
|
|
Interest cost
|
32
|
|
|
23
|
|
|
32
|
|
|||
Actual return on plan assets
|
(18
|
)
|
|
60
|
|
|
(146
|
)
|
|||
Less—return in excess of (less than) expected return
|
(6
|
)
|
|
(79
|
)
|
|
122
|
|
|||
Expected return on plan assets
|
(24
|
)
|
|
(19
|
)
|
|
(24
|
)
|
|||
Settlement loss
|
1
|
|
|
2
|
|
|
3
|
|
|||
Prior service cost amortization
|
1
|
|
|
2
|
|
|
—
|
|
|||
Actuarial and investment loss amortization
|
10
|
|
|
16
|
|
|
8
|
|
|||
Net periodic benefit cost
|
$
|
55
|
|
|
$
|
63
|
|
|
$
|
51
|
|
|
2018
|
|
2017
|
||||||||
Millions of dollars
|
Actual
|
|
Target
|
|
Actual
|
|
Target
|
||||
Canada
|
|
|
|
|
|
|
|
||||
Equity securities
|
49
|
%
|
|
50
|
%
|
|
50
|
%
|
|
50
|
%
|
Fixed income
|
51
|
%
|
|
50
|
%
|
|
50
|
%
|
|
50
|
%
|
United Kingdom—Lyondell Chemical Plans
|
|
|
|
|
|
|
|
||||
Equity securities
|
49
|
%
|
|
50
|
%
|
|
49
|
%
|
|
50
|
%
|
Fixed income
|
51
|
%
|
|
50
|
%
|
|
51
|
%
|
|
50
|
%
|
United Kingdom—Basell Plans
|
|
|
|
|
|
|
|
||||
Equity securities
|
49
|
%
|
|
50
|
%
|
|
49
|
%
|
|
50
|
%
|
Fixed income
|
51
|
%
|
|
50
|
%
|
|
51
|
%
|
|
50
|
%
|
United Kingdom—A. Schulman Plans
|
|
|
|
|
|
|
|
||||
Growth assets
|
94
|
%
|
|
89
|
%
|
|
—
|
|
|
—
|
|
Matching assets
|
6
|
%
|
|
11
|
%
|
|
—
|
|
|
—
|
|
United States
|
|
|
|
|
|
|
|
||||
Equity securities
|
32
|
%
|
|
32
|
%
|
|
36
|
%
|
|
32
|
%
|
Fixed income
|
39
|
%
|
|
38
|
%
|
|
37
|
%
|
|
38
|
%
|
Alternatives
|
29
|
%
|
|
30
|
%
|
|
27
|
%
|
|
30
|
%
|
Millions of dollars
|
|
U.S.
|
|
Non-U.S.
|
||||
Defined benefit plans
|
|
$
|
46
|
|
|
$
|
62
|
|
Multi-employer plans
|
|
—
|
|
|
8
|
|
||
Total
|
|
$
|
46
|
|
|
$
|
70
|
|
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
||||
2019
|
$
|
140
|
|
|
$
|
59
|
|
2020
|
140
|
|
|
56
|
|
||
2021
|
141
|
|
|
57
|
|
||
2022
|
141
|
|
|
58
|
|
||
2023
|
141
|
|
|
61
|
|
||
2024 through 2028
|
677
|
|
|
329
|
|
|
Year Ended December 31,
|
||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||
Weighted average assumptions for the year:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
3.73
|
%
|
|
2.13
|
%
|
|
4.20
|
%
|
|
1.52
|
%
|
|
4.38
|
%
|
|
2.70
|
%
|
Expected return on plan assets
|
7.50
|
%
|
|
2.92
|
%
|
|
8.00
|
%
|
|
2.15
|
%
|
|
8.00
|
%
|
|
3.37
|
%
|
Rate of compensation increase
|
4.00
|
%
|
|
2.94
|
%
|
|
4.00
|
%
|
|
2.93
|
%
|
|
4.00
|
%
|
|
3.15
|
%
|
|
|
|
|
Annualized
|
|||||||||||
|
|
December 31, 2018
|
|
One
Year
|
|
Three
Years
|
|
Five
Years
|
|
Ten
Years
|
|||||
U.S. plan assets
|
|
(1.91
|
)%
|
|
(1.91
|
)%
|
|
5.81
|
%
|
|
4.65
|
%
|
|
9.31
|
%
|
Non-U.S. plan assets
|
|
0.89
|
%
|
|
0.89
|
%
|
|
9.65
|
%
|
|
8.97
|
%
|
|
8.60
|
%
|
|
December 31, 2018
|
||||||||||||||
Millions of dollars
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
U.S.
|
|
|
|
|
|
|
|
||||||||
Common and preferred stock
|
$
|
330
|
|
|
$
|
330
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commingled funds measured at net asset value
|
411
|
|
|
|
|
|
|
|
|||||||
Fixed income securities
|
204
|
|
|
—
|
|
|
204
|
|
|
—
|
|
||||
Real estate measured at net asset value
|
107
|
|
|
|
|
|
|
|
|||||||
Hedge funds measured at net asset value
|
241
|
|
|
|
|
|
|
|
|||||||
Private equity measured at net asset value
|
108
|
|
|
|
|
|
|
|
|||||||
U.S. government securities
|
133
|
|
|
133
|
|
|
—
|
|
|
—
|
|
||||
Cash and cash equivalents
|
26
|
|
|
26
|
|
|
—
|
|
|
—
|
|
||||
Total U.S. Pension Assets
|
$
|
1,560
|
|
|
$
|
489
|
|
|
$
|
204
|
|
|
$
|
—
|
|
|
December 31, 2018
|
||||||||||||||
Millions of dollars
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Non-U.S.
|
|
|
|
|
|
|
|
||||||||
Common stock
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commingled funds measured at net asset value
|
298
|
|
|
|
|
|
|
|
|||||||
Fixed income securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Insurance arrangements
|
570
|
|
|
—
|
|
|
—
|
|
|
570
|
|
||||
Cash and cash equivalents
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Total Non-U.S. Pension Assets
|
$
|
870
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
570
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2017
|
||||||||||||||
Millions of dollars
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
U.S.
|
|
|
|
|
|
|
|
||||||||
Common and preferred stock
|
$
|
410
|
|
|
$
|
410
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commingled funds measured at net asset value
|
410
|
|
|
|
|
|
|
|
|||||||
Fixed income securities
|
225
|
|
|
—
|
|
|
225
|
|
|
—
|
|
||||
Real estate measured at net asset value
|
102
|
|
|
|
|
|
|
|
|||||||
Hedge funds measured at net asset value
|
253
|
|
|
|
|
|
|
|
|||||||
Private equity measured at net asset value
|
94
|
|
|
|
|
|
|
|
|||||||
U.S. government securities
|
148
|
|
|
148
|
|
|
—
|
|
|
—
|
|
||||
Cash and cash equivalents
|
34
|
|
|
34
|
|
|
—
|
|
|
—
|
|
||||
Total U.S. Pension Assets
|
$
|
1,676
|
|
|
$
|
592
|
|
|
$
|
225
|
|
|
$
|
—
|
|
|
December 31, 2017
|
||||||||||||||
Millions of dollars
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Non-U.S.
|
|
|
|
|
|
|
|
||||||||
Common stock
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commingled funds measured at net asset value
|
297
|
|
|
|
|
|
|
|
|||||||
Fixed income securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Insurance arrangements
|
549
|
|
|
—
|
|
|
—
|
|
|
549
|
|
||||
Cash and cash equivalents
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||
Total Non-U.S. Pension Assets
|
$
|
851
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
549
|
|
Millions of dollars
|
Fair
Value
|
|
Unfunded
Commitments
|
|
Remaining
Life
|
|
Redemption Frequency
(if currently eligible)
|
|
Trade to
Settlement
Terms
|
|
Redemption
Notice Period
|
||||
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commingled fund investing in Domestic Equity
|
$
|
112
|
|
|
$
|
—
|
|
|
N/A
|
|
daily
|
|
1 to 3 days
|
|
3 to 4 days
|
Commingled fund investing in International Equity
|
58
|
|
|
—
|
|
|
N/A
|
|
daily
|
|
1 to 3 days
|
|
3 days
|
||
Commingled fund investing in Fixed Income
|
241
|
|
|
—
|
|
|
N/A
|
|
daily
|
|
1 to 3 days
|
|
3 to 7 days
|
||
Real Estate
|
107
|
|
|
8
|
|
|
10 years
|
|
quarterly
|
|
15 to 25 days
|
|
45 to 90 days
|
||
Hedge Funds
|
241
|
|
|
—
|
|
|
N/A
|
|
quarterly
|
|
10 to 30 days
|
|
20 to 90 days
|
||
Private Equity
|
108
|
|
|
76
|
|
|
10 years
|
|
Not eligible
|
|
N/A
|
|
N/A
|
||
Total U.S.
|
$
|
867
|
|
|
$
|
84
|
|
|
|
|
|
|
|
|
|
Millions of dollars
|
Fair
Value
|
|
Unfunded
Commitments
|
|
Remaining
Life
|
|
Redemption Frequency
(if currently eligible)
|
|
Trade to
Settlement
Terms
|
|
Redemption
Notice
Period
|
||||
Non-U.S.
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commingled fund investing in Domestic Equity
|
$
|
33
|
|
|
$
|
—
|
|
|
N/A
|
|
1 to 7 days
|
|
1 to 3 days
|
|
1 to 3 days
|
Commingled fund investing in International Equity
|
122
|
|
|
—
|
|
|
N/A
|
|
1 to 7 days
|
|
1 to 3 days
|
|
1 to 3 days
|
||
Commingled fund investing in Fixed Income
|
143
|
|
|
—
|
|
|
N/A
|
|
daily
|
|
1 to 3 days
|
|
3 days
|
||
Total Non-U.S.
|
$
|
298
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
Millions of dollars
|
Fair
Value
|
|
Unfunded
Commitments
|
|
Remaining
Life
|
|
Redemption Frequency
(if currently eligible)
|
|
Trade to
Settlement
Terms
|
|
Redemption
Notice Period
|
||||
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commingled fund investing in Domestic Equity
|
$
|
106
|
|
|
$
|
—
|
|
|
N/A
|
|
daily
|
|
1 to 3 days
|
|
3 to 4 days
|
Commingled fund investing in International Equity
|
61
|
|
|
—
|
|
|
N/A
|
|
daily
|
|
1 to 3 days
|
|
3 days
|
||
Commingled fund investing in Fixed Income
|
243
|
|
|
—
|
|
|
N/A
|
|
daily
|
|
1 to 3 days
|
|
3 to 7 days
|
||
Real Estate
|
102
|
|
|
12
|
|
|
10 years
|
|
quarterly
|
|
15 to 25 days
|
|
45 to 90 days
|
||
Hedge Funds
|
253
|
|
|
—
|
|
|
N/A
|
|
quarterly
|
|
10 to 30 days
|
|
20 to 90 days
|
||
Private Equity
|
94
|
|
|
92
|
|
|
10 years
|
|
Not eligible
|
|
N/A
|
|
N/A
|
||
Total U.S.
|
$
|
859
|
|
|
$
|
104
|
|
|
|
|
|
|
|
|
|
Millions of dollars
|
Fair
Value
|
|
Unfunded
Commitments
|
|
Remaining
Life
|
|
Redemption Frequency
(if currently eligible)
|
|
Trade to
Settlement
Terms
|
|
Redemption
Notice
Period
|
||||
Non-U.S.
|
|
|
|
|
|
|
|
|
|
||||||
Commingled fund investing in Domestic Equity
|
$
|
29
|
|
|
$
|
—
|
|
|
N/A
|
|
1 to 7 days
|
|
1 to 3 days
|
|
1 to 3 days
|
Commingled fund investing in International Equity
|
119
|
|
|
—
|
|
|
N/A
|
|
1 to 7 days
|
|
1 to 3 days
|
|
1 to 3 days
|
||
Commingled fund investing in Fixed Income
|
149
|
|
|
—
|
|
|
N/A
|
|
daily
|
|
1 to 3 days
|
|
3 days
|
||
Total Non-U.S.
|
$
|
297
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Company Contributions
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Pensionskasse
(a)
|
$
|
8
|
|
|
$
|
27
|
|
|
$
|
7
|
|
|
Year Ended December 31,
|
||||||||||||||
|
2018
|
|
2017
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
||||||||
Benefit obligation, beginning of period
|
$
|
280
|
|
|
$
|
62
|
|
|
$
|
276
|
|
|
$
|
67
|
|
Service cost
|
2
|
|
|
2
|
|
|
3
|
|
|
2
|
|
||||
Interest cost
|
9
|
|
|
1
|
|
|
9
|
|
|
1
|
|
||||
Actuarial (gain) loss
|
(46
|
)
|
|
(3
|
)
|
|
6
|
|
|
(15
|
)
|
||||
Benefits paid
|
(26
|
)
|
|
(1
|
)
|
|
(21
|
)
|
|
(1
|
)
|
||||
Participant contributions
|
6
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Business combination
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Foreign exchange effects
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
8
|
|
||||
Benefit obligation, end of period
|
234
|
|
|
59
|
|
|
280
|
|
|
62
|
|
||||
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets, beginning of period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
21
|
|
|
1
|
|
|
14
|
|
|
1
|
|
||||
Participant contributions
|
5
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Benefits paid
|
(26
|
)
|
|
(1
|
)
|
|
(21
|
)
|
|
(1
|
)
|
||||
Fair value of plan assets, end of period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Funded status, end of period
|
$
|
(234
|
)
|
|
$
|
(59
|
)
|
|
$
|
(280
|
)
|
|
$
|
(62
|
)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Amounts recognized in the Consolidated Balance Sheets consist of:
|
|
|
|
|
|
|
|
||||||||
Accrued benefit liability, current
|
$
|
(18
|
)
|
|
$
|
(1
|
)
|
|
$
|
(18
|
)
|
|
$
|
(1
|
)
|
Accrued benefit liability, long-term
|
(216
|
)
|
|
(58
|
)
|
|
(262
|
)
|
|
(61
|
)
|
||||
Funded status, end of period
|
$
|
(234
|
)
|
|
$
|
(59
|
)
|
|
$
|
(280
|
)
|
|
$
|
(62
|
)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Amounts recognized in Accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
||||||||
Actuarial and investment income (loss)
|
$
|
65
|
|
|
$
|
(15
|
)
|
|
$
|
19
|
|
|
$
|
(19
|
)
|
Balance, end of period
|
$
|
65
|
|
|
$
|
(15
|
)
|
|
$
|
19
|
|
|
$
|
(19
|
)
|
|
U.S. Plans
|
||||||||||
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Net Periodic Other Postretirement Cost:
|
|
|
|
|
|
||||||
Service cost
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Interest cost
|
9
|
|
|
9
|
|
|
11
|
|
|||
Actuarial loss amortization
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net periodic benefit cost
|
$
|
11
|
|
|
$
|
12
|
|
|
$
|
14
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
Non-U.S. Plans
|
||||||||||
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Net Periodic Other Postretirement Cost:
|
|
|
|
|
|
||||||
Service cost
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Interest cost
|
1
|
|
|
1
|
|
|
2
|
|
|||
Actuarial loss amortization
|
1
|
|
|
3
|
|
|
2
|
|
|||
Net periodic benefit cost
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
U.S. Plans
|
||||||||||
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
||||||||
Assumed health care trend rate:
|
|
|
|
||||||||
Immediate trend rate
|
6.4
|
%
|
|
6.7
|
%
|
||||||
Ultimate trend rate (the rate to which the cost trend rate is assumed to decline)
|
4.5
|
%
|
|
4.5
|
%
|
||||||
Year that the rate reaches the ultimate trend rate
|
2038
|
|
|
2038
|
|
||||||
|
|
||||||||||
|
|
||||||||||
|
Non-U.S. Plans
|
||||||||||
|
Canada
|
|
France
|
||||||||
|
December 31,
|
|
December 31,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Assumed health care trend rate:
|
|
|
|
|
|
|
|
||||
Immediate trend rate
|
5.5
|
%
|
|
6.0
|
%
|
|
4.5
|
%
|
|
4.7
|
%
|
Ultimate trend rate (the rate to which the cost trend rate is assumed to decline)
|
4.5
|
%
|
|
4.5
|
%
|
|
4.5
|
%
|
|
4.7
|
%
|
Year that the rate reaches the ultimate trend rate
|
2021
|
|
|
2021
|
|
|
—
|
|
|
—
|
|
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
||||||||
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||
Weighted average assumptions:
|
|
|
|
|
|
|
|
||||
Discount rate
|
4.47
|
%
|
|
2.30
|
%
|
|
3.66
|
%
|
|
2.48
|
%
|
Rate of compensation increase
|
4.50
|
%
|
|
—
|
|
|
4.00
|
%
|
|
—
|
|
|
Year Ended December 31,
|
||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||
Weighted average assumptions for the year:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
3.66
|
%
|
|
2.48
|
%
|
|
4.07
|
%
|
|
1.69
|
%
|
|
4.23
|
%
|
|
2.69
|
%
|
Rate of compensation increase
|
4.00
|
%
|
|
—
|
|
|
4.00
|
%
|
|
—
|
|
|
4.00
|
%
|
|
—
|
|
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
||||
2019
|
$
|
18
|
|
|
$
|
1
|
|
2020
|
18
|
|
|
1
|
|
||
2021
|
18
|
|
|
1
|
|
||
2022
|
18
|
|
|
1
|
|
||
2023
|
18
|
|
|
1
|
|
||
2024 through 2028
|
84
|
|
|
8
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
Millions of dollars
|
Actuarial
(Gain) Loss
|
|
Prior Service
Cost (Credit)
|
|
Actuarial
(Gain) Loss
|
|
Prior Service
Cost (Credit)
|
||||||||
December 31, 2016
|
$
|
722
|
|
|
$
|
1
|
|
|
$
|
12
|
|
|
$
|
—
|
|
Arising during the period
|
(65
|
)
|
|
12
|
|
|
(9
|
)
|
|
—
|
|
||||
Amortization
|
(36
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
||||
Settlement loss
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
December 31, 2017
|
619
|
|
|
10
|
|
|
—
|
|
|
—
|
|
||||
Arising during the period
|
40
|
|
|
4
|
|
|
(49
|
)
|
|
—
|
|
||||
Amortization
|
(31
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
||||
Settlement loss
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
December 31, 2018
|
$
|
625
|
|
|
$
|
13
|
|
|
$
|
(50
|
)
|
|
$
|
—
|
|
|
Company Contributions
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||
Millions of dollars
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||||||
Employee Savings Plans
|
$
|
40
|
|
|
$
|
5
|
|
|
$
|
36
|
|
|
$
|
5
|
|
|
$
|
35
|
|
|
$
|
7
|
|
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Compensation Expense:
|
|
|
|
|
|
||||||
Restricted stock units
|
$
|
15
|
|
|
$
|
13
|
|
|
$
|
10
|
|
Stock options
|
7
|
|
|
7
|
|
|
7
|
|
|||
Qualified performance awards
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
Performance share units
|
17
|
|
|
35
|
|
|
24
|
|
|||
Total
|
$
|
39
|
|
|
$
|
55
|
|
|
$
|
38
|
|
Tax Benefit:
|
|
|
|
|
|
||||||
Restricted stock units
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
4
|
|
Stock options
|
2
|
|
|
2
|
|
|
2
|
|
|||
Qualified performance awards
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Performance share units
|
4
|
|
|
12
|
|
|
8
|
|
|||
Total
|
$
|
10
|
|
|
$
|
19
|
|
|
$
|
13
|
|
|
Number of
Units
|
|
Weighted Average Grant
Date Fair Value
(per share)
|
|||
Thousands of units, except per share amounts
|
|
|
|
|||
Outstanding at January 1, 2018
|
377
|
|
|
$
|
85.17
|
|
Granted
|
213
|
|
|
108.52
|
|
|
Vested
|
(115
|
)
|
|
84.27
|
|
|
Forfeited
|
(13
|
)
|
|
101.67
|
|
|
Outstanding at December 31, 2018
|
462
|
|
|
$
|
95.69
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Weighted average fair value
|
$
|
21.58
|
|
|
$
|
21.55
|
|
|
$
|
20.39
|
|
Fair value assumptions:
|
|
|
|
|
|
||||||
Dividend yield
|
4.0
|
%
|
|
4.0
|
%
|
|
3.0-4.0%
|
|
|||
Expected volatility
|
27.8-29.0%
|
|
|
34.9-35.1%
|
|
|
35.3-36.0%
|
|
|||
Risk-free interest rate
|
2.6-2.9%
|
|
|
2.10-2.29%
|
|
|
1.14-1.93%
|
|
|||
Weighted average expected term, in years
|
6.0
|
|
|
6.0
|
|
|
6.0
|
|
|
Number of
Shares
(in thousands)
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Term
|
|
Aggregate
Intrinsic
Value
(millions of
dollars)
|
|||||
Outstanding at January 1, 2018
|
1,019
|
|
|
$
|
82.93
|
|
|
|
|
|
||
Granted
|
336
|
|
|
109.03
|
|
|
|
|
|
|||
Exercised
|
(64
|
)
|
|
69.36
|
|
|
|
|
|
|||
Forfeited
|
(9
|
)
|
|
100.91
|
|
|
|
|
|
|||
Expired
|
(1
|
)
|
|
109.09
|
|
|
|
|
|
|||
Outstanding at December 31, 2018
|
1,281
|
|
|
$
|
90.30
|
|
|
7.4 years
|
|
$
|
4
|
|
Exercisable at December 31, 2018
|
557
|
|
|
$
|
83.00
|
|
|
6.5 years
|
|
$
|
3
|
|
|
Number of
Units
|
|
Weighted Average
Grant Date Fair Value (per share)
|
|||
Thousands of units, except per share amounts
|
|
|
|
|||
Outstanding at January 1, 2018
|
224
|
|
|
$
|
93.28
|
|
Granted
|
219
|
|
|
89.32
|
|
|
Forfeited
|
(13
|
)
|
|
91.36
|
|
|
Outstanding at December 31, 2018
|
430
|
|
|
$
|
91.33
|
|
|
2018
|
|
2017
|
||
Expected volatility of LyondellBasell N.V. common stock
|
27.15
|
%
|
|
30.98
|
%
|
Expected volatility of peer companies
|
17.45-42.99%
|
|
|
16.98-39.89%
|
|
Average correlation coefficient of peer companies
|
0.50
|
|
|
0.51
|
|
Risk-free interest rate
|
2.40
|
%
|
|
1.46
|
%
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Current:
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
(89
|
)
|
|
$
|
543
|
|
|
$
|
421
|
|
Non-U.S.
|
404
|
|
|
595
|
|
|
557
|
|
|||
State
|
38
|
|
|
47
|
|
|
51
|
|
|||
Total current
|
353
|
|
|
1,185
|
|
|
1,029
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
U.S. federal
|
197
|
|
|
(637
|
)
|
|
339
|
|
|||
Non-U.S.
|
48
|
|
|
22
|
|
|
20
|
|
|||
State
|
15
|
|
|
28
|
|
|
(2
|
)
|
|||
Total deferred
|
260
|
|
|
(587
|
)
|
|
357
|
|
|||
Provision for income taxes before tax effects of other comprehensive income
|
613
|
|
|
598
|
|
|
1,386
|
|
|||
Tax effects of elements of other comprehensive income:
|
|
|
|
|
|
||||||
Pension and postretirement liabilities
|
63
|
|
|
29
|
|
|
(21
|
)
|
|||
Financial derivatives
|
16
|
|
|
(14
|
)
|
|
(96
|
)
|
|||
Foreign currency translation
|
18
|
|
|
(33
|
)
|
|
(7
|
)
|
|||
Unrealized gains (losses) from available-for-sale debt securities
|
—
|
|
|
(3
|
)
|
|
1
|
|
|||
Total income tax expense in comprehensive income
|
$
|
710
|
|
|
$
|
577
|
|
|
$
|
1,263
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Income before income taxes:
|
|
|
|
|
|
||||||
U.S.
|
$
|
2,795
|
|
|
$
|
2,438
|
|
|
$
|
2,511
|
|
Non-U.S.
|
2,516
|
|
|
3,055
|
|
|
2,722
|
|
|||
Total
|
$
|
5,311
|
|
|
$
|
5,493
|
|
|
$
|
5,233
|
|
|
|
|
|
|
|
||||||
Income tax at U.S. statutory rate
|
$
|
1,115
|
|
|
$
|
1,923
|
|
|
$
|
1,832
|
|
Increase (reduction) resulting from:
|
|
|
|
|
|
||||||
Non-U.S. income taxed at different statutory rates
|
89
|
|
|
(164
|
)
|
|
(159
|
)
|
|||
Remeasurement of U.S. net deferred tax liability
|
—
|
|
|
(819
|
)
|
|
—
|
|
|||
State income taxes, net of federal benefit
|
53
|
|
|
40
|
|
|
24
|
|
|||
Exempt income
|
(296
|
)
|
|
(385
|
)
|
|
(349
|
)
|
|||
Uncertain tax positions
|
(320
|
)
|
|
28
|
|
|
39
|
|
|||
U.S. manufacturing deduction
|
—
|
|
|
(57
|
)
|
|
(42
|
)
|
|||
Other, net
|
(28
|
)
|
|
32
|
|
|
41
|
|
|||
Income tax provision
|
$
|
613
|
|
|
$
|
598
|
|
|
$
|
1,386
|
|
|
December 31,
|
||||||
Millions of dollars
|
2018
|
|
2017
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Accelerated tax depreciation
|
$
|
1,809
|
|
|
$
|
1,523
|
|
Investment in joint venture partnerships
|
147
|
|
|
214
|
|
||
Intangible assets
|
151
|
|
|
48
|
|
||
Inventory
|
285
|
|
|
266
|
|
||
Other liabilities
|
22
|
|
|
26
|
|
||
Total deferred tax liabilities
|
2,414
|
|
|
2,077
|
|
||
Deferred tax assets:
|
|
|
|
||||
Tax attributes
|
180
|
|
|
196
|
|
||
Employee benefit plans
|
334
|
|
|
315
|
|
||
Other assets
|
76
|
|
|
97
|
|
||
Total deferred tax assets
|
590
|
|
|
608
|
|
||
Deferred tax asset valuation allowances
|
(120
|
)
|
|
(96
|
)
|
||
Net deferred tax assets
|
470
|
|
|
512
|
|
||
Net deferred tax liabilities
|
$
|
1,944
|
|
|
$
|
1,565
|
|
|
December 31,
|
||||||
Millions of dollars
|
2018
|
|
2017
|
||||
Balance sheet classifications:
|
|
|
|
||||
Deferred tax assets—long-term
|
$
|
31
|
|
|
$
|
90
|
|
Deferred tax liabilities—long-term
|
1,975
|
|
|
1,655
|
|
||
Net deferred tax liabilities
|
$
|
1,944
|
|
|
$
|
1,565
|
|
Millions of dollars
|
Tax
Attributes
|
|
Deferred Tax
on Tax
Attributes
|
||||
2019
|
$
|
47
|
|
|
$
|
9
|
|
2020
|
13
|
|
|
1
|
|
||
2021
|
32
|
|
|
2
|
|
||
2022
|
21
|
|
|
2
|
|
||
2023
|
34
|
|
|
2
|
|
||
Thereafter
|
289
|
|
|
39
|
|
||
Indefinite
|
502
|
|
|
125
|
|
||
Total
|
$
|
938
|
|
|
$
|
180
|
|
|
December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
France
|
$
|
64
|
|
|
$
|
92
|
|
|
$
|
140
|
|
Canada
|
28
|
|
|
31
|
|
|
29
|
|
|||
United Kingdom
|
36
|
|
|
17
|
|
|
16
|
|
|||
Spain
|
11
|
|
|
32
|
|
|
33
|
|
|||
The Netherlands
|
12
|
|
|
13
|
|
|
19
|
|
|||
United States
|
14
|
|
|
10
|
|
|
16
|
|
|||
Other
|
15
|
|
|
1
|
|
|
2
|
|
|||
Total
|
$
|
180
|
|
|
$
|
196
|
|
|
$
|
255
|
|
|
December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
France
|
$
|
23
|
|
|
$
|
25
|
|
|
$
|
22
|
|
Canada
|
28
|
|
|
32
|
|
|
30
|
|
|||
United Kingdom
|
33
|
|
|
17
|
|
|
16
|
|
|||
The Netherlands
|
12
|
|
|
12
|
|
|
12
|
|
|||
United States
|
13
|
|
|
10
|
|
|
16
|
|
|||
Other
|
11
|
|
|
—
|
|
|
—
|
|
|||
|
$
|
120
|
|
|
$
|
96
|
|
|
$
|
96
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
Balance, beginning of period
|
$
|
544
|
|
|
$
|
546
|
|
|
$
|
521
|
|
Additions for tax positions of current year
|
16
|
|
|
15
|
|
|
16
|
|
|||
Additions for tax positions of prior years
|
23
|
|
|
3
|
|
|
11
|
|
|||
Reductions for tax positions of prior years
|
(299
|
)
|
|
(20
|
)
|
|
(2
|
)
|
|||
Settlements (payments/refunds)
|
(15
|
)
|
|
—
|
|
|
—
|
|
|||
Balance, end of period
|
$
|
269
|
|
|
$
|
544
|
|
|
$
|
546
|
|
|
Year Ended December 31,
|
||||||
Millions of dollars
|
2018
|
|
2017
|
||||
Beginning balance
|
$
|
102
|
|
|
$
|
95
|
|
Additional provisions
|
—
|
|
|
—
|
|
||
Changes in estimates
|
4
|
|
|
11
|
|
||
Amounts paid
|
(13
|
)
|
|
(13
|
)
|
||
Foreign exchange effects
|
(3
|
)
|
|
9
|
|
||
Ending balance
|
$
|
90
|
|
|
$
|
102
|
|
Millions of dollars, except per share amounts
|
Dividend Per
Ordinary
Share
|
|
Aggregate
Dividends
Paid
|
|
Date of Record
|
||||
For the year 2018:
|
|
|
|
|
|
||||
March
|
$
|
1.00
|
|
|
$
|
395
|
|
|
March 5, 2018
|
June
|
1.00
|
|
|
392
|
|
|
June 11, 2018
|
||
September
|
1.00
|
|
|
389
|
|
|
September 5, 2018
|
||
December
|
1.00
|
|
|
378
|
|
|
December 10, 2018
|
||
|
$
|
4.00
|
|
|
$
|
1,554
|
|
|
|
For the year 2017:
|
|
|
|
|
|
||||
March
|
$
|
0.85
|
|
|
$
|
343
|
|
|
March 6, 2017
|
June
|
0.90
|
|
|
361
|
|
|
June 5, 2017
|
||
September
|
0.90
|
|
|
356
|
|
|
September 6, 2017
|
||
December
|
0.90
|
|
|
355
|
|
|
December 5, 2017
|
||
|
$
|
3.55
|
|
|
$
|
1,415
|
|
|
|
Millions of dollars, except shares and per share amounts
|
Shares
Repurchased
|
|
Average
Purchase
Price
|
|
Total Purchase
Price, Including
Commissions
|
|||||
For the year 2018:
|
|
|
|
|
|
|||||
2017 Share Repurchase Program
|
4,004,753
|
|
|
$
|
106.05
|
|
|
$
|
425
|
|
2018 Share Repurchase Program
|
15,215,966
|
|
|
95.49
|
|
|
1,453
|
|
||
|
19,220,719
|
|
|
$
|
97.69
|
|
|
$
|
1,878
|
|
For the year 2017:
|
|
|
|
|
|
|||||
2016 Share Repurchase Program
|
3,501,084
|
|
|
$
|
85.71
|
|
|
$
|
300
|
|
2017 Share Repurchase Program
|
6,516,917
|
|
|
83.54
|
|
|
545
|
|
||
|
10,018,001
|
|
|
$
|
84.30
|
|
|
$
|
845
|
|
For the year 2016:
|
|
|
|
|
|
|||||
2015 Share Repurchase Program
|
15,302,707
|
|
|
$
|
80.15
|
|
|
$
|
1,226
|
|
2016 Share Repurchase Program
|
21,316,627
|
|
|
79.18
|
|
|
1,688
|
|
||
|
36,619,334
|
|
|
$
|
79.58
|
|
|
$
|
2,914
|
|
|
Year Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Ordinary shares outstanding:
|
|
|
|
|
|
|||
Beginning balance
|
394,512,054
|
|
|
404,046,331
|
|
|
440,150,069
|
|
Share-based compensation
|
307,335
|
|
|
371,980
|
|
|
418,892
|
|
Warrants exercised
|
—
|
|
|
4,184
|
|
|
200
|
|
Employee stock purchase plan
|
121,398
|
|
|
107,560
|
|
|
96,504
|
|
Purchase of ordinary shares
|
(19,244,126
|
)
|
|
(10,018,001
|
)
|
|
(36,619,334
|
)
|
Ending balance
|
375,696,661
|
|
|
394,512,054
|
|
|
404,046,331
|
|
|
Year Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Ordinary shares held as treasury shares:
|
|
|
|
|
|
|||
Beginning balance
|
183,928,109
|
|
|
174,389,139
|
|
|
138,285,201
|
|
Share-based compensation
|
(307,335
|
)
|
|
(371,980
|
)
|
|
(418,892
|
)
|
Warrants exercised
|
—
|
|
|
509
|
|
|
—
|
|
Employee stock purchase plan
|
(121,398
|
)
|
|
(107,560
|
)
|
|
(96,504
|
)
|
Purchase of ordinary shares
|
19,244,126
|
|
|
10,018,001
|
|
|
36,619,334
|
|
Treasury shares canceled
|
(178,229,883
|
)
|
|
—
|
|
|
—
|
|
Ending balance
|
24,513,619
|
|
|
183,928,109
|
|
|
174,389,139
|
|
Millions of dollars
|
Financial
Derivatives
|
|
Unrealized
Gains
(Losses) on Available-for-Sale Debt
Securities
|
|
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
|
180
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(74
|
)
|
|
111
|
|
||||||
Tax (expense) benefit before reclassifications
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(18
|
)
|
|
(59
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
(110
|
)
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
(74
|
)
|
||||||
Tax (expense) benefit
|
27
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
14
|
|
||||||
Net other comprehensive income (loss)
|
54
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
(92
|
)
|
|
(8
|
)
|
||||||
Balance—December 31, 2018
|
$
|
(68
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(442
|
)
|
|
$
|
(853
|
)
|
|
$
|
(1,363
|
)
|
Balance—January 1, 2017
|
$
|
(75
|
)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(498
|
)
|
|
$
|
(939
|
)
|
|
$
|
(1,511
|
)
|
Other comprehensive income (loss) before reclassifications
|
(323
|
)
|
|
(2
|
)
|
|
15
|
|
|
62
|
|
|
145
|
|
|
(103
|
)
|
||||||
Tax (expense) benefit before reclassifications
|
86
|
|
|
1
|
|
|
2
|
|
|
(15
|
)
|
|
33
|
|
|
107
|
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
264
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
308
|
|
||||||
Tax expense
|
(72
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(86
|
)
|
||||||
Net other comprehensive income (loss)
|
(45
|
)
|
|
(1
|
)
|
|
17
|
|
|
77
|
|
|
178
|
|
|
226
|
|
||||||
Balance—December 31, 2017
|
$
|
(120
|
)
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
(421
|
)
|
|
$
|
(761
|
)
|
|
$
|
(1,285
|
)
|
Balance—January 1, 2016
|
$
|
(79
|
)
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
(428
|
)
|
|
$
|
(926
|
)
|
|
$
|
(1,438
|
)
|
Other comprehensive income (loss) before reclassifications
|
(29
|
)
|
|
7
|
|
|
—
|
|
|
(184
|
)
|
|
(27
|
)
|
|
(233
|
)
|
||||||
Tax (expense) benefit before reclassifications
|
7
|
|
|
(1
|
)
|
|
—
|
|
|
37
|
|
|
7
|
|
|
50
|
|
||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
(63
|
)
|
|
—
|
|
|
—
|
|
|
93
|
|
|
7
|
|
|
37
|
|
||||||
Tax (expense) benefit
|
89
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
73
|
|
||||||
Net other comprehensive income (loss)
|
4
|
|
|
6
|
|
|
—
|
|
|
(70
|
)
|
|
(13
|
)
|
|
(73
|
)
|
||||||
Balance—December 31, 2016
|
$
|
(75
|
)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(498
|
)
|
|
$
|
(939
|
)
|
|
$
|
(1,511
|
)
|
Millions of dollars
|
Year Ended December 31,
|
|
Affected Line Items on
the Consolidated
Statements of Income
|
||||||||||
2018
|
|
2017
|
|
2016
|
|
||||||||
Reclassification adjustments for:
|
|
|
|
|
|
|
|
||||||
Financial derivatives
|
$
|
(110
|
)
|
|
$
|
264
|
|
|
$
|
(63
|
)
|
|
Other income, net
|
Income tax expense (benefit)
|
(27
|
)
|
|
72
|
|
|
(89
|
)
|
|
Provision for income taxes
|
|||
Financial derivatives, net of tax
|
(83
|
)
|
|
192
|
|
|
26
|
|
|
|
|||
|
|
|
|
|
|
|
|
||||||
Amortization of defined pension items:
|
|
|
|
|
|
|
|
||||||
Prior service cost
|
1
|
|
|
3
|
|
|
1
|
|
|
|
|||
Actuarial loss
|
32
|
|
|
39
|
|
|
31
|
|
|
|
|||
Settlement loss
|
3
|
|
|
2
|
|
|
61
|
|
|
|
|||
Income tax expense
|
13
|
|
|
14
|
|
|
16
|
|
|
|
|||
Defined pension items, net of tax
|
23
|
|
|
30
|
|
|
77
|
|
|
|
|||
Foreign currency translations adjustments
|
—
|
|
|
—
|
|
|
7
|
|
|
Other income, net
|
|||
Income tax expense (benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
Provision for income taxes
|
|||
Foreign currency translations adjustments, net of tax
|
—
|
|
|
—
|
|
|
7
|
|
|
|
|||
Total reclassifications, before tax
|
(74
|
)
|
|
308
|
|
|
37
|
|
|
|
|||
Income tax expense (benefit)
|
(14
|
)
|
|
86
|
|
|
(73
|
)
|
|
Provision for income taxes
|
|||
Total reclassifications, after tax
|
$
|
(60
|
)
|
|
$
|
222
|
|
|
$
|
110
|
|
|
Amount included in net income
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||
|
Continuing
|
|
Discontinued
|
|
Continuing
|
|
Discontinued
|
|
Continuing
|
|
Discontinued
|
||||||||||||
Millions of dollars
|
Operations
|
|
Operations
|
|
Operations
|
|
Operations
|
|
Operations
|
|
Operations
|
||||||||||||
Net income (loss)
|
$
|
4,698
|
|
|
$
|
(8
|
)
|
|
$
|
4,895
|
|
|
$
|
(18
|
)
|
|
$
|
3,847
|
|
|
$
|
(10
|
)
|
Less: net (income) loss attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||||
Net income (loss) attributable to the Company shareholders
|
4,698
|
|
|
(8
|
)
|
|
4,897
|
|
|
(18
|
)
|
|
3,846
|
|
|
(10
|
)
|
||||||
Dividends on A.Schulman Special Stock
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income attributable to participating securities
|
(6
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||||
Net income (loss) attributable to ordinary shareholders—basic
|
$
|
4,690
|
|
|
$
|
(8
|
)
|
|
$
|
4,892
|
|
|
$
|
(18
|
)
|
|
$
|
3,842
|
|
|
$
|
(10
|
)
|
Potential diluted effect of PSUs
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to ordinary shareholders— diluted
|
$
|
4,685
|
|
|
$
|
(8
|
)
|
|
$
|
4,892
|
|
|
$
|
(18
|
)
|
|
$
|
3,842
|
|
|
$
|
(10
|
)
|
Millions of shares,
except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic weighted average common stock outstanding
|
389
|
|
|
389
|
|
|
398
|
|
|
398
|
|
|
419
|
|
|
419
|
|
||||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stock options
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
QPA and PSU awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Potential dilutive shares
|
389
|
|
|
389
|
|
|
399
|
|
|
399
|
|
|
420
|
|
|
420
|
|
||||||
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
12.06
|
|
|
$
|
(0.02
|
)
|
|
$
|
12.28
|
|
|
$
|
(0.05
|
)
|
|
$
|
9.17
|
|
|
$
|
(0.02
|
)
|
Diluted
|
$
|
12.03
|
|
|
$
|
(0.02
|
)
|
|
$
|
12.28
|
|
|
$
|
(0.05
|
)
|
|
$
|
9.15
|
|
|
$
|
(0.02
|
)
|
Participating securities
|
0.5
|
|
|
0.5
|
|
|
0.4
|
|
|
0.4
|
|
|
0.3
|
|
|
0.3
|
|
||||||
Dividends declared per share of common stock
|
$
|
4.00
|
|
|
$
|
—
|
|
|
$
|
3.55
|
|
|
$
|
—
|
|
|
$
|
3.33
|
|
|
$
|
—
|
|
•
|
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 oil 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.
|
|
Year Ended December 31, 2018
|
||||||||||||||||||||||||||||||
|
O&P –
Americas |
|
O&P –
EAI |
|
I&D
|
|
APS
|
|
Refining
|
|
Technology
|
|
Other
|
|
Total
|
||||||||||||||||
Millions of dollars
|
|||||||||||||||||||||||||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Customers
|
$
|
6,883
|
|
|
$
|
9,984
|
|
|
$
|
9,426
|
|
|
$
|
4,022
|
|
|
$
|
8,221
|
|
|
$
|
468
|
|
|
$
|
—
|
|
|
$
|
39,004
|
|
Intersegment
|
3,525
|
|
|
854
|
|
|
162
|
|
|
2
|
|
|
936
|
|
|
115
|
|
|
(5,594
|
)
|
|
—
|
|
||||||||
|
10,408
|
|
|
10,838
|
|
|
9,588
|
|
|
4,024
|
|
|
9,157
|
|
|
583
|
|
|
(5,594
|
)
|
|
39,004
|
|
||||||||
Depreciation and amortization expense
|
442
|
|
|
208
|
|
|
287
|
|
|
69
|
|
|
192
|
|
|
43
|
|
|
—
|
|
|
1,241
|
|
||||||||
Other income (expense), net
|
11
|
|
|
48
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
1
|
|
|
39
|
|
|
106
|
|
||||||||
Income from equity investments
|
58
|
|
|
225
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
289
|
|
||||||||
Capital expenditures
|
1,079
|
|
|
248
|
|
|
409
|
|
|
62
|
|
|
250
|
|
|
48
|
|
|
9
|
|
|
2,105
|
|
||||||||
EBITDA
|
2,762
|
|
|
1,163
|
|
|
2,011
|
|
|
400
|
|
|
167
|
|
|
328
|
|
|
36
|
|
|
6,867
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||||||||||
Millions of dollars
|
O&P –
Americas |
|
O&P –
EAI |
|
I&D
|
|
APS
|
|
Refining
|
|
Technology
|
|
Other
|
|
Total
|
||||||||||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Customers
|
$
|
7,265
|
|
|
$
|
9,445
|
|
|
$
|
8,346
|
|
|
$
|
2,922
|
|
|
$
|
6,165
|
|
|
$
|
341
|
|
|
$
|
—
|
|
|
$
|
34,484
|
|
Intersegment
|
2,739
|
|
|
773
|
|
|
126
|
|
|
—
|
|
|
683
|
|
|
109
|
|
|
(4,430
|
)
|
|
—
|
|
||||||||
|
10,004
|
|
|
10,218
|
|
|
8,472
|
|
|
2,922
|
|
|
6,848
|
|
|
450
|
|
|
(4,430
|
)
|
|
34,484
|
|
||||||||
Depreciation and amortization expense
|
433
|
|
|
210
|
|
|
279
|
|
|
35
|
|
|
177
|
|
|
40
|
|
|
—
|
|
|
1,174
|
|
||||||||
Other income (expense), net
|
42
|
|
|
138
|
|
|
1
|
|
|
(2
|
)
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
179
|
|
||||||||
Income from equity investments
|
42
|
|
|
271
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
321
|
|
||||||||
Capital expenditures
|
741
|
|
|
163
|
|
|
332
|
|
|
55
|
|
|
213
|
|
|
32
|
|
|
11
|
|
|
1,547
|
|
||||||||
EBITDA
|
2,899
|
|
|
1,927
|
|
|
1,490
|
|
|
438
|
|
|
157
|
|
|
223
|
|
|
—
|
|
|
7,134
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||||||||||||||
Millions of dollars
|
O&P –
Americas
|
|
O&P –
EAI
|
|
I&D
|
|
APS
|
|
Refining
|
|
Technology
|
|
Other
|
|
Total
|
||||||||||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Customers
|
$
|
6,463
|
|
|
$
|
8,097
|
|
|
$
|
7,085
|
|
|
$
|
2,601
|
|
|
$
|
4,559
|
|
|
$
|
378
|
|
|
$
|
—
|
|
|
$
|
29,183
|
|
Intersegment
|
2,259
|
|
|
621
|
|
|
141
|
|
|
—
|
|
|
576
|
|
|
101
|
|
|
(3,698
|
)
|
|
—
|
|
||||||||
|
8,722
|
|
|
8,718
|
|
|
7,226
|
|
|
2,601
|
|
|
5,135
|
|
|
479
|
|
|
(3,698
|
)
|
|
29,183
|
|
||||||||
Depreciation and amortization expense
|
359
|
|
|
201
|
|
|
269
|
|
|
31
|
|
|
163
|
|
|
41
|
|
|
—
|
|
|
1,064
|
|
||||||||
Other income (expense), net
|
62
|
|
|
19
|
|
|
—
|
|
|
24
|
|
|
8
|
|
|
—
|
|
|
(2
|
)
|
|
111
|
|
||||||||
Income from equity investments
|
59
|
|
|
302
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
367
|
|
||||||||
Capital expenditures
|
1,370
|
|
|
229
|
|
|
333
|
|
|
38
|
|
|
224
|
|
|
36
|
|
|
13
|
|
|
2,243
|
|
||||||||
EBITDA
|
2,788
|
|
|
1,729
|
|
|
1,333
|
|
|
427
|
|
|
72
|
|
|
262
|
|
|
(9
|
)
|
|
6,602
|
|
|
Year Ended December 31,
|
||||||||||
Millions of dollars
|
2018
|
|
2017
|
|
2016
|
||||||
EBITDA:
|
|
|
|
|
|
||||||
Total segment EBITDA
|
$
|
6,831
|
|
|
$
|
7,134
|
|
|
$
|
6,611
|
|
Other EBITDA
|
36
|
|
|
—
|
|
|
(9
|
)
|
|||
Less:
|
|
|
|
|
|
||||||
Depreciation and amortization expense
|
(1,241
|
)
|
|
(1,174
|
)
|
|
(1,064
|
)
|
|||
Interest expense
|
(360
|
)
|
|
(491
|
)
|
|
(322
|
)
|
|||
Add:
|
|
|
|
|
|
||||||
Interest income
|
45
|
|
|
24
|
|
|
17
|
|
|||
Income from continuing operations before income taxes
|
$
|
5,311
|
|
|
$
|
5,493
|
|
|
$
|
5,233
|
|
Millions of dollars
|
O&P –
Americas
|
|
O&P –
EAI
|
|
I&D
|
|
APS
|
|
Refining
|
|
Technology
|
|
Other
|
|
Total
|
||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Property, plant and equipment, net
|
$
|
5,769
|
|
|
$
|
1,745
|
|
|
$
|
2,663
|
|
|
$
|
818
|
|
|
$
|
1,216
|
|
|
$
|
266
|
|
|
$
|
—
|
|
|
$
|
12,477
|
|
Investment in PO joint ventures
|
—
|
|
|
—
|
|
|
469
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
469
|
|
||||||||
Equity investments
|
196
|
|
|
1,326
|
|
|
73
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,611
|
|
||||||||
Goodwill
|
162
|
|
|
114
|
|
|
229
|
|
|
1,300
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
1,814
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Property, plant and equipment, net
|
$
|
5,025
|
|
|
$
|
1,794
|
|
|
$
|
2,457
|
|
|
$
|
350
|
|
|
$
|
1,130
|
|
|
$
|
241
|
|
|
$
|
—
|
|
|
$
|
10,997
|
|
Investment in PO joint ventures
|
—
|
|
|
—
|
|
|
420
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
420
|
|
||||||||
Equity investments
|
187
|
|
|
1,366
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,635
|
|
||||||||
Goodwill
|
162
|
|
|
121
|
|
|
237
|
|
|
41
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
570
|
|
|
Year Ended December 31,
|
||||||
Millions of dollars
|
2018
|
|
2017
|
||||
Long-lived assets:
|
|
|
|
||||
United States
|
$
|
10,346
|
|
|
$
|
8,761
|
|
Germany
|
1,527
|
|
|
1,417
|
|
||
The Netherlands
|
757
|
|
|
779
|
|
||
France
|
565
|
|
|
551
|
|
||
Italy
|
343
|
|
|
329
|
|
||
Mexico
|
254
|
|
|
198
|
|
||
Other
|
1,730
|
|
|
1,585
|
|
||
Total
|
$
|
15,522
|
|
|
$
|
13,620
|
|
|
For the Quarter Ended
|
||||||||||||||
Millions of dollars, except per share amounts
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
2018
|
|
|
|
|
|
|
|
||||||||
Sales and other operating revenues
|
$
|
9,767
|
|
|
$
|
10,206
|
|
|
$
|
10,155
|
|
|
$
|
8,876
|
|
Gross profit
(a)
|
1,755
|
|
|
1,916
|
|
|
1,656
|
|
|
1,148
|
|
||||
Operating income
(b)
|
1,494
|
|
|
1,626
|
|
|
1,317
|
|
|
794
|
|
||||
Income from equity investments
|
96
|
|
|
68
|
|
|
89
|
|
|
36
|
|
||||
Income from continuing operations
(b) (c)
|
1,231
|
|
|
1,655
|
|
|
1,115
|
|
|
697
|
|
||||
Loss from discontinued operations, net of tax
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(5
|
)
|
||||
Net income
(b) (c)
|
1,231
|
|
|
1,654
|
|
|
1,113
|
|
|
692
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
3.12
|
|
|
4.23
|
|
|
2.86
|
|
|
1.81
|
|
||||
Diluted
|
3.11
|
|
|
4.22
|
|
|
2.85
|
|
|
1.79
|
|
|
For the Quarter Ended
|
||||||||||||||
Millions of dollars, except per share amounts
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
2017
|
|
|
|
|
|
|
|
||||||||
Sales and other operating revenues
|
$
|
8,430
|
|
|
$
|
8,403
|
|
|
$
|
8,516
|
|
|
$
|
9,135
|
|
Gross profit
(a)
|
1,439
|
|
|
1,802
|
|
|
1,577
|
|
|
1,607
|
|
||||
Operating income
(b)
|
1,210
|
|
|
1,577
|
|
|
1,332
|
|
|
1,341
|
|
||||
Income from equity investments
|
81
|
|
|
78
|
|
|
81
|
|
|
81
|
|
||||
Income from continuing operations
(b) (c)
|
805
|
|
|
1,134
|
|
|
1,058
|
|
|
1,898
|
|
||||
Loss from discontinued operations, net of tax
|
(8
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
(4
|
)
|
||||
Net income
(b) (c)
|
797
|
|
|
1,130
|
|
|
1,056
|
|
|
1,894
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
1.98
|
|
|
2.82
|
|
|
2.67
|
|
|
4.80
|
|
||||
Diluted
|
1.98
|
|
|
2.81
|
|
|
2.67
|
|
|
4.79
|
|
(a)
|
Represents Sales and other operating revenues less Cost of sales.
|
(b)
|
The three months ended September 30, 2018 and December 31, 2018 include charges for acquisition-related transaction and integration costs associated with our acquisition of A. Schulman of
$53 million
(
$42 million
, after tax) and
$20 million
(
$15 million
, after tax), respectively. The three months ended December 31, 2018 also includes a gain of
$36 million
(
$34 million
, after tax) on the sale of our carbon black subsidiary in France.
|
(c)
|
The three months ended June 30, 2018 includes a
$346 million
benefit related to
$288 million
of previously unrecognized tax benefits and the release of
$58 million
of associated accrued interest.
|
Item 9.
|
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.
|
Item 9A.
|
Controls and Procedures.
|
Item 9B.
|
Other Information.
|
Item 10.
|
Directors, Executive Officers and Corporate Governance.
|
Item 11.
|
Executive Compensation.
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence.
|
Item 14.
|
Principal Accounting Fees and Services.
|
*
|
Except for information or data specifically incorporated herein by reference under Items 10 through 14, other information and data appearing in our 2019 Proxy Statement are not deemed to be a part of this Annual Report on Form 10-K or deemed to be filed with the Commission as a part of this report.
|
Item 15.
|
Exhibits, Financial Statement Schedules.
|
Exhibit
Number
|
Description
|
|
|
2.1
|
|
|
|
3
|
|
|
|
4.1
|
|
|
|
4.2
|
|
|
|
4.3
|
|
|
|
4.4
|
|
|
|
4.5
|
|
|
|
4.6
|
|
|
|
4.7
|
|
|
|
Exhibit
Number
|
Description
|
|
|
4.8
|
|
|
|
4.9
|
|
|
|
4.10
|
|
|
|
4.11
|
|
|
|
4.12
|
|
|
|
4.13
|
|
|
|
4.14
|
|
|
|
4.15
|
|
|
|
4.16
|
|
|
|
10.1+
|
|
|
|
10.2+
|
|
|
|
10.3+*
|
|
|
|
10.4+
|
|
|
|
Exhibit
Number
|
Description
|
|
|
10.5+
|
|
|
|
10.6+
|
|
|
|
10.7+
|
|
|
|
10.8+
|
|
|
|
10.9+
|
|
|
|
10.10+
|
|
|
|
10.11+
|
|
|
|
10.12+*
|
|
|
|
10.13+
|
|
|
|
10.14+
|
|
|
|
10.15+
|
|
|
|
10.16+
|
|
|
|
10.17+*
|
|
|
|
10.18+*
|
|
|
|
10.19+*
|
|
|
|
10.20
|
Exhibit
Number
|
Description
|
|
|
|
|
10.21
|
|
|
|
10.22
|
|
|
|
10.23
|
|
|
|
10.24
|
|
|
|
10.25
|
|
|
|
10.26
|
|
|
|
10.27
|
|
|
|
10.28
|
|
|
|
10.29
|
|
|
|
Exhibit
Number
|
Description
|
|
|
10.30
|
|
|
|
10.31
|
|
|
|
21*
|
|
|
|
23*
|
|
|
|
31.1*
|
|
|
|
31.2*
|
|
|
|
32*
|
|
|
|
101.INS*
|
XBRL Instance Document
|
|
|
101.SCH*
|
XBRL Schema Document
|
|
|
101.CAL*
|
XBRL Calculation Linkbase Document
|
|
|
101.DEF*
|
XBRL Definition Linkbase Document
|
|
|
101.LAB*
|
XBRL Labels Linkbase Document
|
|
|
101.PRE*
|
XBRL Presentation Linkbase Document
|
+
|
Management contract or compensatory plan, contract or arrangement
|
*
|
Filed herewith.
|
Item 16.
|
Form 10-K Summary.
|
|
|
LYONDELLBASELL INDUSTRIES N.V.
|
|
|
|
Date: February 21, 2019
|
|
/
S
/ B
HAVESH
V. P
ATEL
|
|
Name:
|
Bhavesh V. Patel
|
|
Title:
|
Chief Executive Officer
|
Signature
|
Title
|
Date
|
|
|
|
/
S
/ B
HAVESH
V. P
ATEL
|
Chief Executive Officer and
|
February 21, 2019
|
Bhavesh V. Patel
|
Director
|
|
|
(
Principal Executive Officer
)
|
|
|
|
|
/
S
/ T
HOMAS
A
EBISCHER
|
Executive Vice President and
|
February 21, 2019
|
Thomas Aebischer
|
Chief Financial Officer
|
|
|
(
Principal Financial Officer
)
|
|
|
|
|
/
S
/ J
ACINTH
C. S
MILEY
|
Vice President and
|
February 21, 2019
|
Jacinth C. Smiley
|
Chief Accounting Officer
|
|
|
(
Principal Accounting Officer
)
|
|
|
|
|
/
S
/ J
ACQUES
A
IGRAIN
|
Chairman of the Board
|
February 21, 2019
|
Jacques Aigrain
|
and Director
|
|
|
|
|
/
S
/ L
INCOLN
B
ENET
|
Director
|
February 21, 2019
|
Lincoln Benet
|
|
|
|
|
|
/
S
/ J
AGJEET
S. B
INDRA
|
Director
|
February 21, 2019
|
Jagjeet S. Bindra
|
|
|
|
|
|
/
S
/ R
OBIN
B
UCHANAN
|
Director
|
February 21, 2019
|
Robin Buchanan
|
|
|
|
|
|
/
S
/ S
TEPHEN
F. C
OOPER
|
Director
|
February 21, 2019
|
Stephen F. Cooper
|
|
|
|
|
|
/
S
/ N
ANCE
K. D
ICCIANI
|
Director
|
February 21, 2019
|
Nance K. Dicciani
|
|
|
|
|
|
/
S
/ C
LAIRE
S. F
ARLEY
|
Director
|
February 21, 2019
|
Claire S. Farley
|
|
|
|
|
|
/
S
/ B
ELLA
D. G
OREN
|
Director
|
February 21, 2019
|
Bella D. Goren
|
|
|
|
|
|
/
S
/ M
ICHAEL
S. H
ANLEY
|
Director
|
February 21, 2019
|
Michael S. Hanley
|
|
|
|
|
|
/
S
/ B
RUCE
A. S
MITH
|
Director
|
February 21, 2019
|
Bruce A. Smith
|
|
|
|
|
|
/
S
/ R
UDY
M.J.
VAN
DER
M
EER
|
Director
|
February 21, 2019
|
Rudy M.J. van der Meer
|
|
|
|
|
|
LYONDELLBASELL INDUSTRIES N.V.
|
||
|
|
|
By:
|
|
/s/ Jeffrey A. Kaplan
|
Name:
|
|
Jeffrey A. Kaplan
|
Title:
|
|
Executive Vice President and
|
|
|
Chief Legal Officer
|
|
||
LYONDELL CHEMICAL COMPANY
|
||
|
|
|
By:
|
|
/s/ Jeffrey A. Kaplan
|
Name:
|
|
Jeffrey A. Kaplan
|
Title:
|
|
Executive Vice President and
|
|
|
Chief Legal Officer
|
|
||
EXECUTIVE
|
||
|
||
/s/ Bhavesh V. Patel
|
||
Bhavesh (Bob) V. Patel
|
Entity Name
|
Jurisdiction of Formation
|
A. Schulman AG
|
Switzerland
|
A. Schulman Asia Limited
|
Hong Kong
|
A. Schulman Australia Pty Ltd
|
Australia
|
A. Schulman Belgium BVBA
|
Belgium
|
A. Schulman Canada Ltd.
|
Ontario
|
A. Schulman Castellon S.L.
|
Spain
|
A. Schulman de Mexico S.A. de C.V.
|
Mexico
|
A. Schulman del Peru S.A.C.
|
Peru
|
A. Schulman Europe GmbH & Co. KG
|
Germany
|
A. Schulman Europe International B.V.
|
Netherlands
|
A. Schulman Europe Verwaltungs GmbH
|
Germany
|
A. Schulman Gainsborough Ltd
|
United Kingdom
|
A. Schulman GmbH
|
Germany
|
A. Schulman Holding Company France S.A.S.
|
France
|
A. Schulman Holdings (France) S.A.S.
|
France
|
A. Schulman Holdings S.à.r.l.
|
Luxembourg
|
A. Schulman Inc. Limited
|
United Kingdom
|
A. Schulman International Inc.
|
Delaware
|
A. Schulman International Services BVBA
|
Belgium
|
A. Schulman Ireland Limited
|
Ireland
|
A. Schulman Magyarország Kereskedelmi Korlátolt Felelősségű Társaság
|
Hungary
|
A. Schulman Nordic AB
|
Sweden
|
A. Schulman Plásticos do Brasil Ltda.
|
Brazil
|
A. Schulman Plastics (Branch)
|
United Arab Emirates
|
A. Schulman Plastics (Dongguan) Ltd.
|
China
|
A. Schulman Plastics (Malaysia) Sdn. Bhd.
|
Malaysia
|
A. Schulman Plastics (Suzhou) Co., Ltd.
|
China
|
A. Schulman Plastics BVBA
|
Belgium
|
A. Schulman Plastics bvba Bornem Sucursala Cluj-Napoca
|
Romania
|
A. Schulman Plastics India Private Limited
|
India
|
A. Schulman Plastics PTY. LTD.
|
Australia
|
A. Schulman Plastics S.r.l.
|
Italy
|
A. Schulman Plastics SAS
|
France
|
A. Schulman Plastіk Sanayi ve Ticaret Anonim Sirketi
|
Istanbul
|
A. Schulman Polska Sp. z o.o.
|
Warsaw
|
A. Schulman Real Estate GmbH & Co. KG
|
Germany
|
A. Schulman S.à.r.l.
|
Luxembourg
|
A. Schulman S.A.S.
|
France
|
A. Schulman 's-Gravendeel B.V.
|
Netherlands
|
A. Schulman Thermoplastic Compounds Limited
|
United Kingdom
|
A. Schulman Thermoplastic Compounds Sdn Bhd
|
Malaysia
|
A. Schulman, Inc.
|
Delaware
|
Entity Name
|
Jurisdiction of Formation
|
A.Schulman Plastics, odštěpný závod
|
Czech Republic
|
A.Schulman Poznan Sp. Z o.o.
|
Poland
|
Al Waha Petrochemical Company
|
Saudi Arabia
|
AS Global Holdings, Inc.
|
Delaware
|
AS Mex Hold S.A. de C.V.
|
Mexico
|
AS Worldwide LLC & Cie, S.C.S.
|
Luxembourg
|
AS Worldwide, LLC
|
Delaware
|
ASI Akron Land Co.
|
Delaware
|
ASI Employment S.A. de C.V.
|
Mexico
|
ASI Investments Holding Co.
|
Delaware
|
Basell (Thailand) Holdings B.V.
|
Netherlands
|
Basell Advanced Polyolefins (Dalian) Co. Ltd.
|
China
|
Basell Advanced Polyolefins (Suzhou) Co. Ltd.
|
China
|
Basell Advanced Polyolefins (Thailand) Company Ltd.
|
Thailand
|
Basell Arabie Investissements SAS
|
France
|
Basell Asia Pacific Limited
|
Hong Kong
|
Basell Bayreuth Chemie GmbH
|
Germany
|
Basell Benelux B.V.
|
Netherlands
|
Basell Canada Inc.
|
Ontario
|
Basell Chemie Köln GmbH
|
Germany
|
Basell Deutschland GmbH
|
Germany
|
Basell Europe Holdings B.V.
|
Netherlands
|
Basell France S.A.S.
|
France
|
Basell Germany Holdings GmbH
|
Germany
|
Basell Holdings Middle East GmbH
|
Germany
|
Basell Ibérica Poliolefinas Holdings S.L.
|
Spain
|
Basell International Holdings B.V.
|
Netherlands
|
Basell International Trading FZE
|
United Arab Emirates
|
Basell Italia S.r.l
|
Italy
|
Basell Mexico, S. de R.L. de C.V.
|
Mexico
|
Basell Moyen Orient Investissements SAS
|
France
|
Basell North America Inc.
|
Delaware
|
Basell Orlen Polyolefins Sp. Z.o.o.
|
Poland
|
Basell Orlen Polyolefins Sprzedaz Sp. Z.o.o.
|
Poland
|
Basell Poliolefinas Comercial Espagnola S.L.
|
Spain
|
Basell Poliolefinas Iberica S.L.
|
Spain
|
Basell Poliolefinas Ltda.
|
Brazil
|
Basell Poliolefinas, S. de R.L. de C.V.
|
Mexico
|
Basell Poliolefine Italia S.r.l.
|
Italy
|
Basell Polyolefin Istanbul Ticaret Limited Sirketi
|
Turkey
|
Basell Polyolefine GmbH
|
Germany
|
Basell Polyolefines France S.A.S.
|
France
|
Basell Polyolefins Company BVBA
|
Belgium
|
Basell Polyolefins India Private Limited
|
India
|
Basell Polyolefins Korea Ltd.
|
Korea
|
Entity Name
|
Jurisdiction of Formation
|
Basell Polyolefins UK Limited
|
United Kingdom
|
Basell Sales & Marketing Company B.V.
|
Netherlands
|
Basell Service Company B.V.
|
Netherlands
|
Basell Slovakia s.r.o.
|
Slovakia
|
Basell Trading (Shanghai) Co. Ltd.
|
Shanghai
|
Basell UK Holdings Limited
|
United Kingdom
|
Basell UK Ltd.
|
United Kingdom
|
BKV Beteiligungs- und Kunststoffverwertungs-gesellschaft mbH
|
Germany
|
BMC Deutschland GmbH
|
Germany
|
BMC Dongguan Limited
|
China
|
BMC Far East Limited
|
Hong Kong
|
BMC TetraDURTurkey Plastik Hammadde Kompozit Üretim Sanayi ve Ticaret Limted Şirketi
|
Turkey
|
Brindisi Servizi Generali S.c.a.r.l.
|
Italy
|
Bulk Molding Compounds do Brasil Industria de Plásticos Reforçados Ltda.
|
Brazil
|
Bulk Molding Compounds Mexico, S. de R.L. de C.V.
|
Mexico
|
Bulk Molding Compounds, Inc.
|
Illinois
|
Citadel Brazil Holdings LLC
|
Delaware
|
Citadel Intermediate Holdings, LLC
|
Delaware
|
Citadel Plastics Holdings Coöperatief U.A.
|
Amsterdam
|
Citadel Plastics Holdings, Inc.
|
Delaware
|
Citadel Plastics Mexico Holdings, LLC
|
Delaware
|
Citadel Plastics Netherlands Holdings, LLC
|
Delaware
|
Compagnie de Distribution des Hydrocarbures SAS
|
France
|
Compagnie Petrochimique de Berre SAS
|
France
|
Elian S.A.S.
|
France
|
EMS Holding Ltd.
|
Ohio
|
EPS Ethylen-Pipeline-Süd Geschäftsführungs GmbH
|
Germany
|
EPS Ethylen-Pipeline-Süd GmbH & Co. KG
|
Germany
|
Equistar Bayport, LLC
|
Delaware
|
Equistar Chemicals, LP
|
Delaware
|
Equistar GP, LLC
|
Delaware
|
Equistar LP, LLC
|
Delaware
|
Equistar Mont Belvieu Corporation
|
Delaware
|
GuangZhou Basell Advanced Polyolefins Co., Ltd.
|
China
|
Hadlock Plastics, LLC
|
Delaware
|
HGGC Citadel Plastics Holdings, Inc.
|
Delaware
|
HGGC Citadel Plastics Intermediate Holdings, Inc.
|
Delaware
|
HMC Polymers Company Limited
|
Thailand
|
Houston Refining LP
|
Delaware
|
HPC Holdings, LLC
|
Delaware
|
I.F.M. S.c.a.r.l.
|
Italy
|
ICO Europe C.V.
|
Netherlands
|
ICO Holdings New Zealand Limited
|
New Zealand
|
ICO Holdings, LLC
|
Texas
|
ICO Petrochemical Cayman Islands
|
Cayman
|
Entity Name
|
Jurisdiction of Formation
|
Lyondell Chimie France SAS
|
France
|
Lyondell China Holdings Limited
|
Hong Kong
|
Lyondell France Holdings SAS
|
France
|
Lyondell Greater China Holdings Limited
|
Hong Kong
|
Lyondell Greater China Trading Limited
|
China
|
Lyondell Greater China, Ltd.
|
Delaware
|
Lyondell Japan, Inc.
|
Japan
|
Lyondell PO-11 C.V.
|
Netherlands
|
Lyondell POJVGP, LLC
|
Delaware
|
Lyondell POJVLP, LLC
|
Delaware
|
Lyondell POTechGP, Inc.
|
Delaware
|
Lyondell POTechLP, Inc.
|
Delaware
|
Lyondell Refining Company LLC
|
Delaware
|
Lyondell Refining I LLC
|
Delaware
|
Lyondell South Asia Pte Ltd
|
Singapore
|
LyondellBasell Acetyls Holdco, LLC
|
Delaware
|
LyondellBasell Acetyls, LLC
|
Delaware
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LyondellBasell Advanced Polyolefins Mexico, S.A. de C.V.
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Mexico
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LyondellBasell Australia (Holdings) Pty Ltd
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Australia
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LyondellBasell Australia Pty Ltd
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Australia
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LyondellBasell Brasil Ltda.
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Brazil
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LyondellBasell China Holdings B.V.
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Netherlands
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LyondellBasell Covestro Manufacturing Maasvlakte V.O.F.
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Netherlands
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LyondellBasell Disaster Relief Fund
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Delaware
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LyondellBasell F&F Holdco, LLC
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Delaware
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LyondellBasell Finance Company
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Delaware
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LyondellBasell Holdings France SAS
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France
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LyondellBasell Industries Holdings B.V.
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Netherlands
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LyondellBasell Industries N.V.
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Netherlands
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LyondellBasell Investment LLC
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Delaware
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LyondellBasell Malaysia Sdn. Bhd.
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Malaysia
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LyondellBasell Methanol GP, Inc.
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Delaware
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LyondellBasell Methanol LP, Inc.
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Delaware
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LyondellBasell Polyolefin (Shanghai) Co., Ltd.
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China
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LyondellBasell Services France S.A.S.
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France
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LyondellBasell Subholdings B.V.
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Netherlands
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LyondellBasell Syrma SAS
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France
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LyondellBasell Taiwan Co., Ltd.
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Taiwan
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LyondellBasell Transportation Company, LLC
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Delaware
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Natpet Schulman Specialty Plastic Compounds
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Saudi Arabia
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Ningbo ZRCC Lyondell Chemical Co. Ltd.
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China
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Ningbo ZRCC Lyondell Chemical Marketing Co. Ltd.
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China
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NOC Asia Limited
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Hong Kong
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OE Insurance Ltd
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Bermuda
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Oil Casualty Insurance, Ltd.
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Bermuda
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Entity Name
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Jurisdiction of Formation
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Oil Insurance Limited
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Bermuda
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PD Glycol LP
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Texas
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PO JV, LP
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Delaware
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PO Offtake, LP
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Delaware
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Poly Pacific Polymers Sdn. Bhd.
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Malaysia
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Poly Pacific Pty. Ltd.
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Australia
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PolyMirae Co., Ltd.
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Korea
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POSM II Limited Partnership, L.P.
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Delaware
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POSM II Properties Partnership LLC
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Delaware
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Premix Holding Company
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Delaware
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Premix, Inc.
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Ohio
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Prime Colorants, Inc.
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Tennessee
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PT ASchulman Plastics Commercial
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Indonesia
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PTA. Schulman Plastics
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Indonesia
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PTT Chemical PCL
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Thailand
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QCP B.V.
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Netherlands
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QCP Holding B.V.
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Netherlands
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QCP IP B.V.
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Netherlands
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Quantum Composites, Inc.
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Ohio
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Rayong Olefins Co., Ltd.
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Thailand
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RIGK GmbH Gesellschaft zur Rückführung industrieller and gewerblicher Kunstoffverpackungen mbH
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Germany
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San Jacinto Rail Limited
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Delaware
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Saudi Ethylene & Polyethylene Company
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Saudi Arabia
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Saudi Polyolefins Company
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Saudi Arabia
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SCG ICO Polymers Company Limited
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Thailand
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Sociedad Espanola De Materiales Plasticos, Semap, S.A.
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Spain
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Société des Stockages Petroliers du Rhône SA
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France
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Stichting TopCo, in liquidation
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Netherlands
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Surplast S.A.
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Argentina
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Technology JV, LP
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Delaware
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tetra-DUR Kunststoff-Produktion GmbH
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Germany
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The Matrixx Group, Incorporated
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Indiana
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TRV Thermische Rückstandsverwertung GmbH & Co. KG
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Germany
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TRV Thermische Rückstandsverwertung Verwaltungs-GmbH
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Germany
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ULSAN PP Co., Ltd.
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Korea
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(1)
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I have reviewed this annual report on Form 10-K of LyondellBasell Industries N.V.;
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(2)
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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(3)
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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(4)
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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(5)
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Bhavesh V. Patel
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Bhavesh V. Patel
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Chief Executive Officer
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(1)
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I have reviewed this annual report on Form 10-K of LyondellBasell Industries N.V.;
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(2)
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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(3)
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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(4)
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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(5)
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Thomas Aebischer
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Thomas Aebischer
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Executive Vice President and Chief Financial Officer
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/s/ Bhavesh V. Patel
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Bhavesh V. Patel
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Chief Executive Officer
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/s/ Thomas Aebischer
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Thomas Aebischer
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Executive Vice President and Chief Financial Officer
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