https://www.avient.com/sites/default/files/2021-10/avnt-q3-2021-news-release.pdf
2) Tax adjustments include the net tax benefit/(expense) from one-time income tax items, the set-up or reversal of uncertain tax position reserves
and deferred income tax valuation allowance adjustments.
10
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
September 30, 2021
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents $ 545.2 $ 649.5
Accounts receivable, net 703.0 516.6
Inventories, net 477.2 327.5
Other current assets 123.5 108.5
Total current assets 1,848.9 1,602.1
Property, net 669.6 694.9
Goodwill 1,293.9 1,308.1
Intangible assets, net 948.4 1,008.5
Operating lease assets, net 81.6 80.9
Other non-current assets 168.6 176.0
Total assets $ 5,011.0 $ 4,870.5
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 8.7 $ 18.6
Accounts payable 557.7 471.7
Current operating lease obligations 24.1 25.1
Accrued expenses and other current liabilities 371.3 285.6
Total current liabilities 961.8 801.0
Non-current liabilities:
Long-term debt 1,851.0 1,854.0
Pension and other post-retirement benefits 111.0 115.0
Non-current operating lease obligations 57.7 56.0
Other non-current liabilities 244.1 332.8
Total non-current liabilities 2,263.8 2,357.8
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 1,768.8 1,697.1
Noncontrolling interest 16.6 14.6
Total equity 1,785.4 1,711.7
Total liabilities and equity $ 5,011.0 $ 4,870.5
11
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Nine Months Ended
September 30,
2021 2020
Operating Activities
Net income $ 201.7 $ 58.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 105.8 74.8
Accelerated depreciation and amortization 1.9 2.5
Share-based compensation expense 8.4 7.1
Changes in assets and liabilities, net of the effect of acquisitions:
Increase in accounts receivable (199.7) (12.7)
(Increase) decrease in inventories (156.2) 53.0
Increase in accounts payable 95.3 21.3
Decrease in pension and other post-retirement benefits (14.2) (14.4)
Increase in post-acquisition earnout liabilities — 2.5
Increase in accrued expenses and other assets and liabilities, net 67.0 56.1
Taxes paid on gain on divestiture — (142.0)
Payment of post-acquisition date earnout liability — (38.1)
Net cash provided by operating activities 110.0 68.7
Investing activities
Capital expenditures (62.7) (38.6)
Business acquisitions, net of cash acquired (47.6) (1,342.7)
Net proceeds from divestiture — 7.1
Other investing activities (2.0) 5.2
Net cash used by investing activities (112.3) (1,369.0)
Financing activities
Debt offering proceeds — 650.0
Purchase of common shares for treasury (4.2) (13.6)
Cash dividends paid (58.2) (52.8)
Repayment of long-term debt (16.5) (6.0)
Payments of withholding tax on share awards (9.1) (1.9)
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 (91.5) 1,011.5
Effect of exchange rate changes on cash (10.5) 1.4
Decrease in cash and cash equivalents (104.3) (287.4)
Cash and cash equivalents at beginning of year 649.5 864.7
Cash and cash equivalents at end of period $ 545.2 $ 577.3
12
Attachment 6
Avient Corporation
Business Segment Operations (Unaudited)
(In millions)
Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) 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/2024-08/AVNT Second Quarter Earnings Press Release.pdf
2) Tax adjustments include the net tax impact from non-recurring income tax items, adjustments to uncertain tax position reserves and the
establishment, reversal or changes to valuation allowances.
10
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
June 30, 2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents $ 489.4 $ 545.8
Accounts receivable, net 486.6 399.9
Inventories, net 365.9 347.0
Other current assets 117.2 114.9
Total current assets 1,459.1 1,407.6
Property, net 1,019.9 1,028.9
Goodwill 1,685.1 1,719.3
Intangible assets, net 1,515.7 1,590.8
Other non-current assets 228.0 221.9
Total assets $ 5,907.8 $ 5,968.5
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 657.7 $ 9.5
Accounts payable 435.2 432.3
Accrued expenses and other current liabilities 405.3 331.8
Total current liabilities 1,498.2 773.6
Non-current liabilities:
Long-term debt 1,420.8 2,070.5
Pension and other post-retirement benefits 63.3 67.2
Deferred income taxes 276.3 281.6
Other non-current liabilities 315.0 437.6
Total non-current liabilities 2,075.4 2,856.9
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 2,317.5 2,319.2
Noncontrolling interest 16.7 18.8
Total equity 2,334.2 2,338.0
Total liabilities and equity $ 5,907.8 $ 5,968.5
11
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Six Months Ended
June 30,
2024 2023
Operating Activities
Net income $ 83.5 $ 42.7
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization 88.4 96.2
Accelerated depreciation 0.8 1.9
Share-based compensation expense 9.0 6.5
Changes in assets and liabilities:
Increase in accounts receivable (97.0) (66.6)
(Increase) decrease in inventories (27.3) 14.0
Increase (decrease) in accounts payable 11.9 (26.2)
Taxes paid on gain on sale of business — (103.0)
Accrued expenses and other assets and liabilities, net (6.2) 9.8
Net cash provided (used) by operating activities 63.1 (24.7)
Investing activities
Capital expenditures (55.8) (45.9)
Net proceeds from divestiture — 7.3
Proceeds from plant closures 3.4 —
Other investing activities (2.1) —
Net cash used by investing activities (54.5) (38.6)
Financing activities
Cash dividends paid (47.0) (45.0)
Repayment of long-term debt (4.5) (1.0)
Other financing activities (3.3) (2.3)
Net cash used by financing activities (54.8) (48.3)
Effect of exchange rate changes on cash (10.2) (0.8)
Decrease in cash and cash equivalents (56.4) (112.4)
Cash and cash equivalents at beginning of year 545.8 641.1
Cash and cash equivalents at end of period $ 489.4 $ 528.7
12
Attachment 6
Avient Corporation
Business Segment Operations (Unaudited)
(In millions)
Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) 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/2024-05/AVNT Q1 2024 Earnings Press Release_0.pdf
2) Tax adjustments include the net tax impact from non-recurring income tax items, adjustments to uncertain tax position reserves and the
establishment, reversal or changes to valuation allowances.
9
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
March 31, 2024 December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents $ 444.3 $ 545.8
Accounts receivable, net 475.3 399.9
Inventories, net 354.0 347.0
Other current assets 117.1 114.9
Total current assets 1,390.7 1,407.6
Property, net 1,021.7 1,028.9
Goodwill 1,700.1 1,719.3
Intangible assets, net 1,546.5 1,590.8
Other non-current assets 217.1 221.9
Total assets $ 5,876.1 $ 5,968.5
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 9.6 $ 9.5
Accounts payable 428.3 432.3
Accrued expenses and other current liabilities 294.2 331.8
Total current liabilities 732.1 773.6
Non-current liabilities:
Long-term debt 2,069.4 2,070.5
Pension and other post-retirement benefits 66.3 67.2
Deferred income taxes 280.0 281.6
Other non-current liabilities 390.5 437.6
Total non-current liabilities 2,806.2 2,856.9
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 2,321.3 2,319.2
Noncontrolling interest 16.5 18.8
Total equity 2,337.8 2,338.0
Total liabilities and equity $ 5,876.1 $ 5,968.5
10
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Three Months Ended
March 31,
2024 2023
Operating activities
Net income $ 49.7 $ 20.4
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization 43.8 48.7
Accelerated depreciation 0.5 1.8
Share-based compensation expense 3.3 3.2
Changes in assets and liabilities:
Increase in accounts receivable (81.9) (40.2)
(Increase) decrease in inventories (12.3) 3.8
Increase (decrease) in accounts payable 1.7 (9.9)
Accrued expenses and other assets and liabilities, net (47.6) (50.0)
Net cash used by operating activities (42.8) (22.2)
Investing activities
Capital expenditures (24.4) (20.3)
Net proceeds from divestiture — 7.3
Proceeds from plant closures 2.0 —
Other investing activities (2.1) —
Net cash used by investing activities (24.5) (13.0)
Financing activities
Cash dividends paid (23.5) (22.5)
Repayment of long-term debt (2.7) (0.8)
Other financing activities (1.9) (2.3)
Net cash used by financing activities (28.1) (25.6)
Effect of exchange rate changes on cash (6.1) 2.4
Decrease in cash and cash equivalents (101.5) (58.4)
Cash and cash equivalents at beginning of year 545.8 641.1
Cash and cash equivalents at end of period $ 444.3 $ 582.7
11
Attachment 6
Avient Corporation
Business Segment Operations (Unaudited)
(In millions)
Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) 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/2024-10/Avient CDP Climate Change %26 Water Submission 20241001.pdf
For high impact risks, ERM risk owners are assigned to actively manage the risk.
More active tracking will be initiated in
2025.
As a founding member, we are collaborating with over 70 member companies and supporters to
promote infrastructure, education and engagement, innovation, and clean up efforts to keep plastic waste in the right place.
https://www.avient.com/sites/default/files/2024-11/Aquamix Product Bulletin.pdf
Active
concentrations are pre-measured to eliminate pre-
blending steps in processing.
KEY CHARACTERISTICS
• Formulated intermediaries
• Shortens development cycles
• Streamlines operations
• Uses resources more effectively
• Delivered pre-adjusted for pH, viscosity,
and activity
• Non-toxic and dust-free
• Low to zero VOCs
TYPICAL USES
Aquamix dispersions and emulsions are suitable
for use in a variety of applications, including:
• Adhesives and coatings
• Mattresses
• Bandages and wraps
• Latex-dipped goods including gloves and
balloons
Copyright © 2024, Avient Corporation.
https://www.avient.com/sites/default/files/2024-09/Terms and Conditions of Sale for Denmark.pdf
Buyer shall have no right of set-off.
Seller may assign
rights or delegate duties and/or subcontract the per-
formance of Seller’s obligations hereunder without
the consent of Buyer.
Within 10 (ten) days after receipt of such
notice, Seller may exercise its right to terminate the
order confirmation by giving Buyer written notice.
19.
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Press Release-1.pdf
2) Tax adjustments include the net tax benefit/(expense) from non-recurring income tax items, adjustments to uncertain tax position reserves and
deferred income tax valuation allowances.
11
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
Year Ended
December 31,
2022 2021
ASSETS
Current assets:
Cash and cash equivalents $ 641.1 $ 601.2
Accounts receivable, net 440.6 439.9
Inventories, net 372.7 305.8
Current assets held for sale — 360.2
Other current assets 115.3 119.9
Total current assets 1,569.7 1,827.0
Property, net 1,049.2 672.3
Goodwill 1,671.9 1,284.8
Intangible assets, net 1,597.6 925.2
Operating lease assets, net 60.4 58.2
Non-current assets held for sale — 22.0
Other non-current assets 136.2 207.7
Total assets $ 6,085.0 $ 4,997.2
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 2.2 $ 8.6
Accounts payable 454.4 429.5
Current operating lease obligations 17.0 21.1
Current liabilities held for sale — 141.3
Accrued expenses and other current liabilities 395.8 340.2
Total current liabilities 869.4 940.7
Non-current liabilities:
Long-term debt 2,176.7 1,850.3
Pension and other post-retirement benefits 67.2 99.9
Deferred income taxes 342.5 100.6
Non-current operating lease obligations 40.9 37.3
Non-current liabilities held for sale — 13.1
Other non-current liabilities 235.5 164.8
Total non-current liabilities 2,862.8 2,266.0
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 2,334.5 1,774.7
Noncontrolling interest 18.3 15.8
Total equity 2,352.8 1,790.5
Total liabilities and equity $ 6,085.0 $ 4,997.2
12
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Year Ended
December 31,
2022 2021
Operating activities
Net income $ 703.4 $ 230.6
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of business, net of tax expense (550.1) —
Depreciation and amortization 157.6 144.2
Accelerated depreciation 5.5 1.7
Amortization of inventory step-up 34.4 1.5
Deferred income tax expense (benefit) 0.5 (27.3)
Share-based compensation expense 13.2 11.2
Changes in assets and liabilities, net of the effect of acquisitions:
Decrease (increase) in accounts receivable 32.6 (143.1)
Decrease (increase) in inventories 14.0 (141.0)
Increase in accounts payable 10.7 95.3
Increase (decrease) in pension and other post-retirement benefits 7.1 (10.9)
Taxes paid on gain on divestiture (2.8) —
(Decrease) increase in accrued expenses and other assets and liabilities, net (27.7) 71.6
Net cash provided by operating activities 398.4 233.8
Investing activities
Capital expenditures (105.5) (100.6)
Business acquisitions, net of cash acquired (1,426.1) (47.6)
Settlement of foreign exchange derivatives 93.3 —
Proceeds from divestiture 928.2 —
Other investing activities 6.1 (2.0)
Net cash used by investing activities (504.0) (150.2)
Financing activities
Debt offering proceeds 1,300.0 —
Purchase of common shares for treasury (36.4) (4.2)
Cash dividends paid (86.8) (77.7)
Repayment of long-term debt (956.8) (18.5)
Payments on withholding tax on share awards (4.3) (10.7)
Debt financing costs (49.3) —
Other financing activities — (3.5)
Net cash provided (used) by financing activities 166.4 (114.6)
Effect of exchange rate changes on cash (20.9) (17.3)
Increase (decrease) in cash and cash equivalents 39.9 (48.3)
Cash and cash equivalents at beginning of year 601.2 649.5
Cash and cash equivalents at end of year $ 641.1 $ 601.2
13
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.
Reconciliation of Pro Forma Net Debt
December 31,
2022
Short-term and current portion of long term debt $ 2.2
Total long-term debt, net 2,176.7
Unamortized discount and debt issuance cost 37.4
Total debt $ 2,216.3
Cash (641.1)
Net taxes due from sale of business 105.0
Adjusted cash $ (536.1)
Net debt $ 1,680.2
16
Free Cash Flow Calculation
December 31,
2022
Cash provided by operating activities 398.4
Capital expenditures (105.5)
Free cash flow $ 292.9
Reconciliation to EBITDA and Adjusted EBITDA
Year Ended
December 31, 2022
Net (loss) income from continuing operations – GAAP $ 83.1
Income tax (benefit) expense (19.3)
Interest expense 119.8
Depreciation and amortization from continuing operations 162.5
EBITDA $ 346.1
Special items, before income tax 194.0
Interest expense included in special items (26.0)
Depreciation and amortization included in special items (5.5)
APM pro forma adjustments - 8 months 2022* 83.1
Adjusted EBITDA $ 591.7
* Pro forma adjustment for January - August 2022 APM results (period before Avient ownership).
https://www.avient.com/sites/default/files/2025-02/News Release - AVNT-2024.12.31-News Release 2.12.25 2PM_0.pdf
2) Tax adjustments include the net tax impact from non-recurring income tax items and certain adjustments to uncertain tax position reserves
and valuation allowances.
10
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
Year Ended December 31,
2024 2023
ASSETS
Current assets:
Cash and cash equivalents $ 544.5 $ 545.8
Accounts receivable, net 399.5 399.9
Inventories, net 346.8 347.0
Other current assets 131.3 114.9
Total current assets 1,422.1 1,407.6
Property, net 955.3 1,028.9
Goodwill 1,659.7 1,719.3
Intangible assets, net 1,450.4 1,590.8
Operating lease assets, net 89.1 65.3
Deferred income tax assets 81.3 92.3
Other non-current assets 153.2 64.3
Total assets $ 5,811.1 $ 5,968.5
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 7.7 $ 9.5
Accounts payable 417.4 432.3
Accrued expenses and other current liabilities 331.0 331.8
Total current liabilities 756.1 773.6
Non-current liabilities:
Long-term debt 2,059.3 2,070.5
Deferred income taxes 260.4 281.6
Other non-current liabilities 405.7 504.8
Total non-current liabilities 2,725.4 2,856.9
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 2,313.8 2,319.2
Noncontrolling interest 15.8 18.8
Total equity 2,329.6 2,338.0
Total liabilities and equity $ 5,811.1 $ 5,968.5
11
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Year Ended
December 31,
2024 2023
Operating activities
Net income $ 170.7 $ 76.2
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 179.7 188.8
Increase in environmental insurance receivable (34.0) —
Deferred income tax benefit (23.8) (61.3)
Share-based compensation expense 15.4 13.2
Changes in assets and liabilities, net of the effect of acquisitions:
(Increase) decrease in accounts receivable (15.2) 38.6
(Increase) decrease in inventories (13.7) 24.3
Increase (decrease) in accounts payable 0.3 (22.2)
Decrease in pension, retirement benefits and deferred compensation (34.3) (8.7)
Taxes paid on gain on sale of business — (104.1)
(Decrease) increase in environmental obligations (11.2) 38.9
Accrued expenses and other assets and liabilities, net 22.9 17.9
Net cash provided by operating activities 256.8 201.6
Investing activities
Capital expenditures (121.9) (119.4)
Net proceeds from divestiture — 7.3
Proceeds from plant closures 3.4 7.6
Other investing activities (2.1) 10.3
Net cash used by investing activities (120.6) (94.2)
Financing activities
Proceeds from long-term borrowings 650.0 —
Payments on long-term borrowings (660.9) (105.8)
Cash dividends paid (94.0) (90.2)
Payments on withholding tax on share awards (6.4) (3.4)
Debt financing costs (9.6) (2.3)
Net cash used by financing activities (120.9) (201.7)
Effect of exchange rate changes on cash (16.6) (1.0)
Decrease in cash and cash equivalents (1.3) (95.3)
Cash and cash equivalents at beginning of year 545.8 641.1
Cash and cash equivalents at end of year $ 544.5 $ 545.8
12
Attachment 6
Avient Corporation
Business Segment Operations (Unaudited)
(In millions)
Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) 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.
Three Months Ended
December 31,
Year Ended
December 31,
Reconciliation to Consolidated Statements of Income: 2024 2023 2024 2023
Sales $ 746.5 $ 719.0 $ 3,240.4 $ 3,142.8
Gross margin - GAAP 259.5 208.9 1,056.7 892.5
Special items in gross margin (Attachment 3) (23.3) 17.6 (0.7) 80.0
Adjusted gross margin $ 236.2 $ 226.5 $ 1,056.0 $ 972.5
Adjusted gross margin as a percent of sales 31.6 % 31.5 % 32.6 % 30.9 %
Operating income - GAAP 85.6 43.1 329.3 196.8
Special items in operating income (Attachment 3) (20.4) 26.1 21.4 116.0
Adjusted operating income $ 65.2 $ 69.2 $ 350.7 $ 312.8
Adjusted operating income as a percent of sales 8.7 % 9.6 % 10.8 % 10.0 %
Three Months Ended
December 31,
Year Ended
December 31,
Reconciliation to EBITDA and Adjusted EBITDA: 2024 2023 2024 2023
Net income from continuing operations – GAAP $ 48.5 $ 27.6 $ 170.7 $ 76.3
Income tax expense (benefit) 14.8 (7.0) 54.1 11.0
Interest expense 25.5 26.8 105.6 115.3
Depreciation and amortization from continuing operations 45.4 44.2 179.7 188.8
EBITDA from continuing operations $ 134.2 $ 91.6 $ 510.1 $ 391.4
Special items, before tax (23.9) 22.4 20.1 114.6
Interest expense included in special items — (0.1) (2.3) (2.3)
Depreciation and amortization included in special items (0.3) — (1.5) (1.9)
Adjusted EBITDA $ 110.0 $ 113.9 $ 526.4 $ 501.8
Adjusted EBITDA as a percent of sales 14.7 % 15.8 % 16.2 % 16.0 %
Three Months Ended March 31, 2024
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 49.4 $ 0.54
Special items, after-tax 5.5 0.06
Amortization expense, after-tax 14.9 0.16
Adjusted net income / EPS $ 69.8 $ 0.76
(1) Per share amounts may not recalculate from figures presented herein due to rounding
14
Year Ended December 31,
Adjusted Free Cash Flow Calculation 2024 2023
Cash provided by operating activities $ 256.8 $ 201.6
Taxes paid on gain on sale of business — 104.1
One-time payout associated with deferred compensation plans 20.8 —
Adjusted cash provided by operating activities $ 277.6 $ 305.7
Capital expenditures (121.9) (119.4)
Adjusted free cash flow $ 155.7 $ 186.3
https://www.avient.com/sites/default/files/2024-02/AVNT Q4 2023 Earnings Press Release.pdf
2) Tax adjustments include the net tax impact from non-recurring income tax items, adjustments to uncertain tax position reserves and the
establishment, reversal or changes to valuation allowances.
10
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
Year Ended
December 31,
2023 2022
ASSETS
Current assets:
Cash and cash equivalents $ 545.8 $ 641.1
Accounts receivable, net 399.9 440.6
Inventories, net 347.0 372.7
Other current assets 114.9 115.3
Total current assets 1,407.6 1,569.7
Property, net 1,028.9 1,049.2
Goodwill 1,719.3 1,671.9
Intangible assets, net 1,590.8 1,597.6
Operating lease assets, net 65.3 60.4
Other non-current assets 156.6 136.2
Total assets $ 5,968.5 $ 6,085.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 9.5 $ 2.2
Accounts payable 432.3 454.4
Current operating lease obligations 16.6 17.0
Accrued expenses and other current liabilities 315.2 395.8
Total current liabilities 773.6 869.4
Non-current liabilities:
Long-term debt 2,070.5 2,176.7
Pension and other post-retirement benefits 67.2 67.2
Deferred income taxes 281.6 342.5
Non-current operating lease obligations 43.2 40.9
Other non-current liabilities 394.4 235.5
Total non-current liabilities 2,856.9 2,862.8
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 2,319.2 2,334.5
Noncontrolling interest 18.8 18.3
Total equity 2,338.0 2,352.8
Total liabilities and equity $ 5,968.5 $ 6,085.0
11
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Year Ended
December 31,
2023 2022
Operating activities
Net income $ 76.2 $ 703.4
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of business, net of tax expense — (550.1)
Depreciation and amortization 186.9 157.6
Accelerated depreciation 1.9 5.5
Amortization of inventory step-up — 34.4
Deferred income tax (benefit) expense (61.3) 0.5
Share-based compensation expense 13.2 13.2
Changes in assets and liabilities, net of the effect of acquisitions:
Decrease in accounts receivable 38.6 32.6
Decrease in inventories 24.3 14.0
(Decrease) increase in accounts payable (22.2) 10.7
(Decrease) increase in pension and other post-retirement benefits (15.1) 7.1
Taxes paid on gain on sale of business (104.1) (2.8)
Accrued expenses and other assets and liabilities, net 63.2 (27.7)
Net cash provided by operating activities 201.6 398.4
Investing activities
Capital expenditures (119.4) (105.5)
Business acquisitions, net of cash acquired — (1,426.1)
Settlement of foreign exchange derivatives — 93.3
Net proceeds from divestiture 7.3 928.2
Proceeds from plant closures 7.6 6.1
Other investing activities 10.3 —
Net cash used by investing activities (94.2) (504.0)
Financing activities
Debt offering proceeds — 1,300.0
Purchase of common shares for treasury — (36.4)
Cash dividends paid (90.2) (86.8)
Repayment of long-term debt (105.8) (956.8)
Payments on withholding tax on share awards (3.4) (4.3)
Debt financing costs (2.3) (49.3)
Net cash (used) provided by financing activities (201.7) 166.4
Effect of exchange rate changes on cash (1.0) (20.9)
(Decrease) increase in cash and cash equivalents (95.3) 39.9
Cash and cash equivalents at beginning of year 641.1 601.2
Cash and cash equivalents at end of year $ 545.8 $ 641.1
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.
Three Months Ended Year Ended
Reconciliation of Pro Forma Adjusted Earnings per Share December 31, 2022
Net (loss) income from continuing operations attributable to Avient
shareholders $ (17.0) $ 82.8
Special items, after tax (Attachment 3) 38.3 116.2
Amortization expense, after-tax (Attachment 1) 14.6 49.0
Adjusted net income from continuing operations excluding special items 35.9 248.0
APM pro forma adjustments to net income from continuing operations* 2.5 13.6
APM amortization expense, after tax* — 19.1
Pro forma adjusted net income from continuing operations attributable to Avient
shareholders $ 38.4 $ 280.7
Weighted average diluted shares 91.7 92.2
Pro forma adjusted EPS - excluding special items $ 0.42 $ 3.04
* Pro forma adjustment for January - August 2022 APM results (period before Avient ownership) including the impacts of debt financing and
prepayments on net income from continuing operations.
14
Free Cash Flow Calculation December 31, 2023
Cash provided by operating activities $ 201.6
Taxes paid on gain on sale of business 104.1
Adjusted cash provided by operating activities $ 305.7
Capital expenditures $ (119.4)
Free cash flow $ 186.3
Three Months Ended
March 31, 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS
Net income from continuing operations attributable to Avient shareholders $ 20.8 $ 0.23
Special items, after tax 22.3 0.24
Amortization expense, after-tax 15.1 0.16
Adjusted net income / EPS $ 58.2 $ 0.63
Three Months Ended
December 31,
Year Ended
December 31,
Reconciliation to EBITDA and Pro Forma Adjusted EBITDA 2023 2022 2023 2022
Net income (loss) from continuing operations – GAAP $ 27.6 $ (16.6) $ 76.3 $ 83.1
Income tax (benefit) expense (7.0) (60.8) 11.0 (19.3)
Interest expense 26.8 49.4 115.3 119.8
Depreciation and amortization from continuing operations 44.2 48.6 188.8 162.5
EBITDA from continuing operations $ 91.6 $ 20.6 $ 391.4 $ 346.1
Special items, before tax 22.4 104.3 114.6 194.0
Interest expense included in special items (0.1) (16.0) (2.3) (26.0)
Depreciation and amortization included in special items — (1.5) (1.9) (5.5)
Adjusted EBITDA $ 113.9 $ 107.4 $ 501.8 $ 508.6
APM pro forma adjustments - 8 months 2022* — — — 83.1
Pro forma adjusted EBITDA $ 113.9 $ 107.4 $ 501.8 $ 591.7
* Pro forma adjustment for January - August 2022 APM results (period before Avient ownership).
https://www.avient.com/sites/default/files/2023-03/Avient Annual Report 2022.pdf
Employee Recruitment
Avient’s success is driven by having the best talent in the right roles.
Cash Flows
The following table summarizes our cash flows from operating, investing and financing activities:
Cash provided by (used by):
Operating Activities $ 398.4 $ 233.8 $ 221.6
Investing Activities (504.0) (150.2) (1,431.6)
Financing Activities 166.4 (114.6) 982.0
Effect of exchange rate on cash (20.9) (17.3) 12.8
Net increase (decrease) in cash and cash equivalents $ 39.9 $ (48.3) $ (215.2)( ) ( )
Operating activities
In 2022, net cash provided by operating activities increased to $398.4 million as compared to $233.8 million in 2021,
as a result of a reduction in working capital, offset by higher incentive payments in 2022 associated with 2021
performance.
Restricted Stock Units
RSUs represent contingent rights to receive one common share at a future date provided certain vesting criteria are
met.