https://www.avient.com/sites/default/files/2024-03/AS-FILED EF20024640 Avient Corp ARS.pdf
We immediately recognize actuarial gains and losses in our operating results in the year in which the gains or losses occur.
Gains and losses on these contracts generally offset gains and losses on the assets and liabilities being hedged.
We immediately recognize actuarial gains and losses in our operating results in the year in which the gains or losses occur.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520RW%2520Baird%2520Global%2520Industrial%2520Conference%2520-%252011%253A8%253A2016.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: Our ability to realize anticipated savings and operational benefits from the realignment of assets, including the closure of manufacturing facilities; The timing of closings and shifts of production to new facilities related to asset realignments and any unforeseen loss of customers and/or disruptions of service or quality caused by such closings and/or production shifts; Separation and severance amounts that differ from original estimates; Amounts for non-cash charges related to asset write-offs and accelerated depreciation realignments of property, plant and equipment, that differ from original estimates; Our ability to identify and evaluate acquisition targets and consummate acquisitions; The ability to successfully integrate acquired companies into our operations, retain the management teams of acquired companies, retain relationships with customers of acquired companies, and achieve the expected results of such acquisitions, including whether such businesses will be accretive to our earnings; Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; The financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; The speed and extent of an economic recovery, including the recovery of the housing market; Our ability to achieve new business gains; The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; Changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business; Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; Fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions and employee productivity goals; An inability to raise or sustain prices for products or services; An inability to maintain appropriate relations with unions and employees; Our ability to continue to pay cash dividends; The amount and timing of repurchases of our common shares, if any; and Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation. The above list of factors is not exhaustive. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
In addition, operating income before special items and adjusted EPS are components of various PolyOne annual and long-term employee incentive plans. A reconciliation of each non-GAAP financial measure with the most directly comparable GAAP financial measure is attached to this presentation which is posted on our website at www.polyone.com. 4 POLYONE CORPORATION About PolyOne Reach 7,000 associates | 77 facilities | $3.4 B 2015 revenue Global Presence 10,000 global customers | Americas, Europe, Africa, Asia | Global sales, technical and manufacturing footprint Solutions 35,000+ polymer solutions | 12 innovation centers | Support for design through manufacturing 5 POLYONE CORPORATION What We Do Value Formulation Expertise Inputs Base resins Additives Modifiers Pigments Expertise in Polymer Materials, Services and Solutions OEMs Brand Owners Processers Assemblers Driving customer value with specialty products & services Service InVisiOSM Color Services IQ Design Labs LSS Customer First POLYONE CORPORATION 6 CAI 23% SEM 15% DSS 13% POD 29% PPS 20% 2015 Revenue: $3.4 Billion At a Glance United States 66% Europe 13% Canada 7% Asia 7% Latin America 7% $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 Revenue: $3.4 Billion 2015 Operating Income: $322 Million CAI 38% SEM 23% DSS 4% POD 19% PPS 16% Adjusted Earnings Per Share 7 POLYONE CORPORATION Old PolyOne *Operating Income excludes corporate charges and special items 2% 43% 65% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2020 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 80%+ Specialty OI $5M $87M $229M Transformation 2020 Platinum Vision Platinum Vision Mix Shift Highlights Specialty Transformation POLYONE CORPORATION 8 -$0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Earnings Per Share $0.56 3Q -2% 0% 2% 4% 6% 8% 10% 12% 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Consolidated Operating Margin 2.8% 5.2% 5.6% 6.7% 8.3% 6.9% 9.5% 9.9% 3Q 28 Consecutive Quarters of EPS Growth 9 POLYONE CORPORATION 2006 2016 YTD 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % of Sales Specialty: Color, Additives & Inks 1.7% 17.0% 20%+ Specialty Engineered Materials 1.1% 15.2% 20%+ Designed Structures & Solutions N/A 0.6% (TTM) 8 – 10% Performance Products & Solutions 5.5% 11.6% 12 – 14% Distribution 2.6% 6.6% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 60% 80%+ 3) ROIC* 5.0% 11.6% 15% 4) Adjusted EPS Growth N/A 11.5% Double Digit Expansion Proof of Performance & 2020 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period POLYONE CORPORATION 10 2,883 2,414 2006 2015 Volume (lbs in millions) -16% $103 $192 2006 2015 Commercial, R&D and Marketing Spending ($M) +86% $88 $322 2006 2015 Adjusted Operating Profit ($M) +266% Ours is Not a Cost Cutting Story 11 POLYONE CORPORATION Innovation Drives Earnings Growth *Specialty Platform revenue from products introduced in last five years $20 $53 2006 2015 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 34% 2006 2015 CAI & SEM Gross Margin 12% 43% 2006 2015 Target ≥ 35% Innovation Pipeline Potential 12 POLYONE CORPORATION Globalization Specialization Commercial Excellence Operational Excellence Growth in urbanization Changing demographics Climate and resource challenges Increase of individual power Evolution and expansion of healthcare Strategic Growth Opportunities Four Pillar Strategy Global Megatrends Attractive Revenue & Margin Growth Opportunities 13 POLYONE CORPORATION Primary Industries Served 2015 Revenue: $3.4 Billion Electrical & Electronic 5% Building & Construction 12% Appliance 4% Industrial 14% Wire & Cable 9% Healthcare 11% Consumer 10% Packaging 13% Transportation 20% Focus End Markets 14 POLYONE CORPORATION Therma-Tech™ & Sheet GEON™ Vinyl Polymer Colorants Therma-Tech™ TPE’s & Film TPE + OnForce™ Gravi-Tech™ Page 14 Film Target End Markets… Healthcare 15 POLYONE CORPORATION Sound & Vibration Management Fuel Handling Systems Interior & Exterior Trim Structural Braces & Brackets Interior Structural Components Lighting Air management Electronics & Cameras Fluid Handling Target End Markets… Automotive Underhood Components Roof Systems 16 POLYONE CORPORATION PreservaPak™ OnColor™ Smart Batch™ VersaFlex™ TPE Cap Liner ColorMatrix™ Amosorb™ Oxygen Scavenger ColorMatrix™ Ultimate™ UV Light Barrier OnCap™ Laser Marking Additives Target End Markets… Packaging 17 POLYONE CORPORATION Source: Outdoor Industry Association TPE Vibration Dampening (SEM/GLS) TPE + OnForce (SEM) OnForce (SEM) Advanced Composites (SEM) TPE Vibration Dampening (SEM/GLS) Target End Markets… Outdoor High Performance Thermoplastic Elastomers (SEM) Advanced Composites (SEM) Polymer Colorants (CAI) Sheet (DSS) TPE & Film (SEM + DSS) Advanced Composites (SEM) Polymer Colorants (CAI) Thermatech (SEM) Thermoplastic Elastomers (SEM) TPE + OnForce (SEM) OnForce (SEM) 18 POLYONE CORPORATION Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Investing in operational and LSS initiatives ~75% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased 318,000 shares in Q3 2016 Repurchased 17.6 million shares since early 2013 9.7 million shares are available for repurchase under the current authorization Increased annual dividend by 12.5% to $0.54 per share, representing the sixth consecutive year of dividend growth 19 POLYONE CORPORATION Returning Cash to Shareholders $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.54 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2011 2012 2013 2014 2015 2016 2017 Annual Dividend Since 2011, we have returned nearly $800 million to shareholders $130 million returned through dividends $650 million returned through share repurchases $650M $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 Q3'16 Cumulative Share Repurchases (in millions) POLYONE CORPORATION 20 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; the effect of changes in accounting principles or other such laws or provisions affecting reported results; and tax adjustments.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Morgan%2520Stanley%2520Global%2520Chemicals%2520and%2520Agriculture%2520Conference%2520-%252011%253A15%253A2016.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: Our ability to realize anticipated savings and operational benefits from the realignment of assets, including the closure of manufacturing facilities; The timing of closings and shifts of production to new facilities related to asset realignments and any unforeseen loss of customers and/or disruptions of service or quality caused by such closings and/or production shifts; Separation and severance amounts that differ from original estimates; Amounts for non-cash charges related to asset write-offs and accelerated depreciation realignments of property, plant and equipment, that differ from original estimates; Our ability to identify and evaluate acquisition targets and consummate acquisitions; The ability to successfully integrate acquired companies into our operations, retain the management teams of acquired companies, retain relationships with customers of acquired companies, and achieve the expected results of such acquisitions, including whether such businesses will be accretive to our earnings; Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; The financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; The speed and extent of an economic recovery, including the recovery of the housing market; Our ability to achieve new business gains; The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; Changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business; Changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; Fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions and employee productivity goals; An inability to raise or sustain prices for products or services; An inability to maintain appropriate relations with unions and employees; Our ability to continue to pay cash dividends; The amount and timing of repurchases of our common shares, if any; and Other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation. The above list of factors is not exhaustive. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
In addition, operating income before special items and adjusted EPS are components of various PolyOne annual and long-term employee incentive plans. A reconciliation of each non-GAAP financial measure with the most directly comparable GAAP financial measure is attached to this presentation which is posted on our website at www.polyone.com. 4 POLYONE CORPORATION About PolyOne Reach 7,000 associates | 77 facilities | $3.4 B 2015 revenue Global Presence 10,000 global customers | Americas, Europe, Africa, Asia | Global sales, technical and manufacturing footprint Solutions 35,000+ polymer solutions | 12 innovation centers | Support for design through manufacturing 5 POLYONE CORPORATION What We Do Value Formulation Expertise Inputs Base resins Additives Modifiers Pigments Expertise in Polymer Materials, Services and Solutions OEMs Brand Owners Processers Assemblers Driving customer value with specialty products & services Service InVisiOSM Color Services IQ Design Labs LSS Customer First POLYONE CORPORATION 6 CAI 23% SEM 15% DSS 13% POD 29% PPS 20% 2015 Revenue: $3.4 Billion At a Glance United States 66% Europe 13% Canada 7% Asia 7% Latin America 7% $0.12 $0.27 $0.21 $0.13 $0.68 $0.82 $1.00 $1.31 $1.80 $1.96 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 Revenue: $3.4 Billion 2015 Operating Income: $322 Million CAI 38% SEM 23% DSS 4% POD 19% PPS 16% Adjusted Earnings Per Share 7 POLYONE CORPORATION Old PolyOne *Operating Income excludes corporate charges and special items 2% 43% 65% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2020 % o f O pe ra tin g In co m e* JV's Performance Products & Solutions Distribution Specialty 80%+ Specialty OI $5M $87M $229M Transformation 2020 Platinum Vision Platinum Vision Mix Shift Highlights Specialty Transformation POLYONE CORPORATION 8 -$0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Earnings Per Share $0.56 3Q -2% 0% 2% 4% 6% 8% 10% 12% 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted Consolidated Operating Margin 2.8% 5.2% 5.6% 6.7% 8.3% 6.9% 9.5% 9.9% 3Q 28 Consecutive Quarters of EPS Growth 9 POLYONE CORPORATION 2006 2016 YTD 2020 “Where we were” “Where we are” Platinum Vision 1) Operating Income % of Sales Specialty: Color, Additives & Inks 1.7% 17.0% 20%+ Specialty Engineered Materials 1.1% 15.2% 20%+ Designed Structures & Solutions N/A 0.6% (TTM) 8 – 10% Performance Products & Solutions 5.5% 11.6% 12 – 14% Distribution 2.6% 6.6% 6.5 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 60% 80%+ 3) ROIC* 5.0% 11.6% 15% 4) Adjusted EPS Growth N/A 11.5% Double Digit Expansion Proof of Performance & 2020 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period POLYONE CORPORATION 10 2,883 2,414 2006 2015 Volume (lbs in millions) -16% $103 $192 2006 2015 Commercial, R&D and Marketing Spending ($M) +86% $88 $322 2006 2015 Adjusted Operating Profit ($M) +266% Ours is Not a Cost Cutting Story 11 POLYONE CORPORATION Innovation Drives Earnings Growth *Specialty Platform revenue from products introduced in last five years $20 $53 2006 2015 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14% 34% 2006 2015 CAI & SEM Gross Margin 12% 43% 2006 2015 Target ≥ 35% Innovation Pipeline Potential 12 POLYONE CORPORATION Globalization Specialization Commercial Excellence Operational Excellence Growth in urbanization Changing demographics Climate and resource challenges Increase of individual power Evolution and expansion of healthcare Strategic Growth Opportunities Four Pillar Strategy Global Megatrends Attractive Revenue & Margin Growth Opportunities 13 POLYONE CORPORATION Primary Industries Served 2015 Revenue: $3.4 Billion Electrical & Electronic 5% Building & Construction 12% Appliance 4% Industrial 14% Wire & Cable 9% Healthcare 11% Consumer 10% Packaging 13% Transportation 20% Focus End Markets 14 POLYONE CORPORATION Therma-Tech™ & Sheet GEON™ Vinyl Polymer Colorants Therma-Tech™ TPE’s & Film TPE + OnForce™ Gravi-Tech™ Page 14 Film Target End Markets… Healthcare 15 POLYONE CORPORATION Sound & Vibration Management Fuel Handling Systems Interior & Exterior Trim Structural Braces & Brackets Interior Structural Components Lighting Air management Electronics & Cameras Fluid Handling Target End Markets… Automotive Underhood Components Roof Systems 16 POLYONE CORPORATION PreservaPak™ OnColor™ Smart Batch™ VersaFlex™ TPE Cap Liner ColorMatrix™ Amosorb™ Oxygen Scavenger ColorMatrix™ Ultimate™ UV Light Barrier OnCap™ Laser Marking Additives Target End Markets… Packaging 17 POLYONE CORPORATION Source: Outdoor Industry Association TPE Vibration Dampening (SEM/GLS) TPE + OnForce (SEM) OnForce (SEM) Advanced Composites (SEM) TPE Vibration Dampening (SEM/GLS) Target End Markets… Outdoor High Performance Thermoplastic Elastomers (SEM) Advanced Composites (SEM) Polymer Colorants (CAI) Sheet (DSS) TPE & Film (SEM + DSS) Advanced Composites (SEM) Polymer Colorants (CAI) Thermatech (SEM) Thermoplastic Elastomers (SEM) TPE + OnForce (SEM) OnForce (SEM) 18 POLYONE CORPORATION Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return Expanding our sales, marketing, and technical capabilities Investing in operational and LSS initiatives ~75% of capital expenditures fund growth initiatives Organic Growth Acquisitions Share Repurchases Dividends Targets that expand our: • Specialty offerings • End market presence • Geographic breadth Synergy opportunities Adjacent material solutions Repurchased 318,000 shares in Q3 2016 Repurchased 17.6 million shares since early 2013 9.7 million shares are available for repurchase under the current authorization Increased annual dividend by 12.5% to $0.54 per share, representing the sixth consecutive year of dividend growth 19 POLYONE CORPORATION Returning Cash to Shareholders $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.54 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2011 2012 2013 2014 2015 2016 2017 Annual Dividend Since 2011, we have returned nearly $800 million to shareholders $130 million returned through dividends $650 million returned through share repurchases $650M $0 $150 $300 $450 $600 $750 2011 2012 2013 2014 2015 Q3'16 Cumulative Share Repurchases (in millions) POLYONE CORPORATION 20 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne?
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant phase-in costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; the effect of changes in accounting principles or other such laws or provisions affecting reported results; and tax adjustments.
https://www.avient.com/sites/default/files/2021-07/avnt-q2-2021-earnings-release.pdf
Microsoft Word - Final - 7.29 1158am AVNT-2021.06.30-News Release (002) 1 NEWS RELEASE FOR IMMEDIATE RELEASE Avient Announces Record Second Quarter 2021 Results, Increases Full Year Guidance • GAAP EPS from continuing operations increased to $0.74 from $0.25 in the prior year quarter • Sales increased 42% to $1.235 billion and adjusted EPS increased 107% to $0.87 driven by very strong demand conditions in nearly all end markets • Full year adjusted EPS guidance for 2021 increased from $2.80 to $3.00, representing 55% growth over the prior year adjusted EPS of $1.93 • Investor Day to be held December 9th in New York City will highlight sustainable solutions portfolio and innovation to drive future growth CLEVELAND – July 30, 2021 – Avient Corporation (NYSE: AVNT), a leading provider of specialized and sustainable material solutions, today reported its second quarter results for 2021.
I'm more proud that we have been able to overcome these additional costs to increase adjusted EPS, while serving our customers and keeping our employees healthy and safe.” 2 The company cited robust demand across all end markets, particularly in consumer applications (up 67%) as revenue increased 42% to $1.235 billion.
The company also noted that on July 1, 2021 it acquired Magna Colours Ltd., a market leader in sustainable, water-based inks technology for the textile screen printing industry.
https://www.avient.com/investor-center/news/polyone-announces-second-quarter-2017-results
Adjusted EPS on a consolidated basis was impacted by raw material inflation, which compressed margins and partially offset our sales gains, most notably in our Specialty Engineered Materials segment.
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; mark-to-market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results.
Gain from the sale of closed facilities
https://www.avient.com/sites/default/files/2022-02/Q4 2021 Avient Earnings Release_0.pdf
Avient’s performance in this environment has been differentiated as a result of our specialty focus, end market transformation and excellence in execution.”
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; the current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows including without any limitation, any supply chain and logistics issues; changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business; fluctuations in raw material prices, quality and supply, and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; information systems failures and cyberattacks; and amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions.
Three Months Ended December 31, 2021 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 29.8 $ 0.32 $ 74.2 $ 0.81 Special items, after tax (Attachment 3) 24.0 0.26 (26.7) (0.29) Adjusted net income / EPS - excluding special items $ 53.8 $ 0.58 $ 47.5 $ 0.52 (1) Per share amounts may not recalculate from figures presented herein due to rounding Year Ended December 31, 2021 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 230.8 $ 2.51 $ 132.0 $ 1.46 Special items, after tax (Attachment 3) 50.0 0.54 24.8 0.27 Adjusted net income / EPS - excluding special items $ 280.8 3.05 $ 156.8 1.73 (1) Per share amounts may not recalculate from figures presented herein due to rounding 8 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Sales $ 1,201.5 $ 997.0 $ 4,818.8 $ 3,242.1 Cost of sales 948.4 744.1 3,719.2 2,457.8 Gross margin 253.1 252.9 1,099.6 784.3 Selling and administrative expense 179.1 187.9 718.4 595.0 Operating income 74.0 65.0 381.2 189.3 Interest expense, net (17.5) (19.3) (75.3) (74.6) Other (expense) income, net (5.4) 11.7 (1.3) 24.3 Income from continuing operations before income taxes 51.1 57.4 304.6 139.0 Income tax (expense) benefit (22.2) 17.3 (74.0) (5.2) Net income from continuing operations 28.9 74.7 230.6 133.8 Income (loss) from discontinued operations, net of income taxes — 0.1 — (0.4) Net income 28.9 74.8 230.6 133.4 Net loss (income) attributable to noncontrolling interests 0.9 (0.5) 0.2 (1.8) Net income attributable to Avient common shareholders $ 29.8 $ 74.3 $ 230.8 $ 131.6 Earnings per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.33 $ 0.81 $ 2.53 $ 1.47 Discontinued operations — — — (0.01) Total $ 0.33 $ 0.81 $ 2.53 $ 1.46 Earnings per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.32 $ 0.81 $ 2.51 $ 1.46 Discontinued operations — — — (0.01) Total $ 0.32 $ 0.81 $ 2.51 $ 1.45 Cash dividends declared per share of common stock $ 0.2375 $ 0.2125 $ 0.8750 $ 0.8200 Weighted-average shares used to compute earnings per common share: Basic 91.5 91.4 91.4 90.1 Diluted 92.4 92.1 92.1 90.6 9 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Cost of sales: Restructuring costs, including accelerated depreciation $ (6.0) $ (1.8) $ (14.6) $ (4.3) Environmental remediation costs (0.5) (1.1) (22.9) (20.4) Reimbursement of previously incurred environmental costs — — 4.5 8.7 Acquisition related costs 0.6 1.2 (0.6) (9.3) Impact on cost of sales (5.9) (1.7) (33.6) (25.3) Selling and administrative expense: Restructuring, legal and other (4.2) (13.0) (5.9) (22.5) Acquisition earn-out adjustments — 1.5 — (1.0) Acquisition related costs (1.1) (1.4) (8.3) (24.9) Impact on selling and administrative expense (5.3) (12.9) (14.2) (48.4) Impact on operating income (11.2) (14.6) (47.8) (73.7) Costs related to committed financing in interest expense, net — — — (10.1) Other income, net — 0.1 0.1 0.4 Pension settlement/curtailment and mark-to-market adjustment (loss) gain (9.4) 10.3 (9.4) 17.2 Impact on income from continuing operations before income taxes (20.6) (4.2) (57.1) (66.2) Income tax benefit (expense) on above special items 4.1 (1.3) 13.0 14.1 Tax adjustments(2) (7.5) 32.2 (5.9) 27.3 Impact of special items on net income from continuing operations attributable to Avient Shareholders $ (24.0) $ 26.7 $ (50.0) $ (24.8) Diluted earnings per common share impact of special items on net income from continuing operations attributable to Avient shareholders $ (0.26) $ 0.29 $ (0.54) $ (0.27) Weighted average shares used to compute adjusted earnings per share: Diluted 92.4 92.1 92.1 90.6 (1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to- market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. (2) Tax adjustments include the net tax benefit/(expense) from one-time income tax items, adjustments to uncertain tax position reserves and deferred income tax valuation allowances. 10 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (Unaudited) (In millions) Year Ended December 31, 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 601.2 $ 649.5 Accounts receivable, net 642.3 516.6 Inventories, net 461.1 327.5 Other current assets 128.1 108.5 Total current assets 1,832.7 1,602.1 Property, net 676.1 694.9 Goodwill 1,286.4 1,308.1 Intangible assets, net 925.2 1,008.5 Operating lease assets, net 74.1 80.9 Other non-current assets 208.4 176.0 Total assets $ 5,002.9 $ 4,870.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 8.6 $ 18.6 Accounts payable 553.9 471.7 Current operating lease obligations 24.2 25.1 Accrued expenses and other current liabilities 359.6 285.6 Total current liabilities 946.3 801.0 Non-current liabilities: Long-term debt 1,850.3 1,854.0 Pension and other post-retirement benefits 100.0 115.0 Deferred income taxes 100.6 140.0 Non-current operating lease obligations 50.1 56.0 Other non-current liabilities 165.1 192.8 Total non-current liabilities 2,266.1 2,357.8 SHAREHOLDERS' EQUITY Avient shareholders’ equity 1,774.7 1,697.1 Noncontrolling interest 15.8 14.6 Total equity 1,790.5 1,711.7 Total liabilities and equity $ 5,002.9 $ 4,870.5 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Year Ended December 31, 2021 2020 Operating activities Net income $ 230.6 $ 133.4 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 144.2 111.8 Accelerated depreciation 1.7 3.2 Share-based compensation expense 11.2 11.3 Changes in assets and liabilities, net of the effect of acquisitions: Increase in accounts receivable (143.1) (4.6) (Increase) decrease in inventories (139.5) 40.2 Increase in accounts payable 95.3 78.4 (Decrease) increase in pension and other post-retirement benefits (10.9) 30.7 Increase in post-acquisition earnout liabilities — 1.0 Increase (decrease) in accrued expenses and other assets and liabilities, net 44.3 (3.7) Taxes paid on gain on divestiture — (142.0) Payment of post-acquisition date earnout liability — (38.1) Net cash provided by operating activities 233.8 221.6 Investing activities Capital expenditures (100.6) (63.7) Business acquisitions, net of cash acquired (47.6) (1,380.2) Net proceeds from divestiture — 7.1 Other investing activities (2.0) 5.2 Net cash used by investing activities (150.2) (1,431.6) Financing activities Debt offering proceeds — 650.0 Purchase of common shares for treasury (4.2) (22.4) Cash dividends paid (77.7) (71.3) Repayment of long-term debt (18.5) (7.8) Payments on withholding tax on share awards (10.7) (2.3) Debt financing costs — (9.5) Equity offering proceeds, net of underwriting discount and issuance costs — 496.1 Payment of acquisition date earnout liability — (50.8) Other financing activities (3.5) — Net cash (used) provided by financing activities (114.6) 982.0 Effect of exchange rate changes on cash (17.3) 12.8 Decrease in cash and cash equivalents (48.3) (215.2) Cash and cash equivalents at beginning of year 649.5 864.7 Cash and cash equivalents at end of year $ 601.2 $ 649.5 12 Attachment 6 Avient Corporation Business Segment Operations (Unaudited) (In millions) Operating income at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/resources/PolyOne%25202017%2520Annual%2520Report.pdf
This increase is largely due to a $3.3 million mark-to-market loss in 2017 as compared to an $8.4 million mark-to-market gain in 2016.
We immediately recognize actuarial gains and losses in our operating results in the year in which the gains or losses occur.
Gains and losses on these contracts generally offset gains and losses on the assets and liabilities being hedged.
https://www.avient.com/industries/consumer/consumer-staples/everyday-essentials
But we understand their importance, and how vital it is to produce them well, in ways that will enhance your consumers’ experience and gain their loyalty.
Material solutions in textiles as original as the market.
https://www.avient.com/products/thermoplastic-elastomers/versollan-thermoplastic-elastomers
Gain insight to critical issues behind achieving high quality overmolded products.
Marketing + Technical Info
https://www.avient.com/knowledge-base/article/creating-circular-composites-challenges-and-opportunities-polymer-materials-engineers
The sustainability concept of circularity has gained prominence, presenting both challenges and exciting opportunities for the composites industry.
Materials and design engineers should consider these opportunities in the market and explore various avenues to help make their composites more circular.