filings.toolsItem 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
115K characters. Original on sec.gov · Markdown
Item 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars, except earnings per share | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||
| Trade | $ | 9,014 | $ | 7,503 | $ | 16,066 | $ | 15,031 | |||||||||||||||
| Related parties | 163 | 155 | 308 | 304 | |||||||||||||||||||
| 9,177 | 7,658 | 16,374 | 15,335 | ||||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||
| Cost of sales | 7,139 | 6,871 | 13,635 | 13,999 | |||||||||||||||||||
| Impairments | 74 | 32 | 89 | 32 | |||||||||||||||||||
| Selling, general and administrative expenses | 387 | 435 | 798 | 836 | |||||||||||||||||||
| Research and development expenses | 34 | 35 | 70 | 69 | |||||||||||||||||||
| 7,634 | 7,373 | 14,592 | 14,936 | ||||||||||||||||||||
| Operating income | 1,543 | 285 | 1,782 | 399 | |||||||||||||||||||
| Interest expense | (138) | (118) | (276) | (225) | |||||||||||||||||||
| Interest income | 24 | 21 | 55 | 51 | |||||||||||||||||||
| Loss on sale of business | (734) | — | (734) | — | |||||||||||||||||||
| Other income, net | 56 | 29 | 66 | 50 | |||||||||||||||||||
| Income from continuing operations before equity investments and income taxes | 751 | 217 | 893 | 275 | |||||||||||||||||||
| Income from equity investments | 57 | 7 | 52 | 8 | |||||||||||||||||||
| Income from continuing operations before income taxes | 808 | 224 | 945 | 283 | |||||||||||||||||||
| Provision for income taxes | 236 | 69 | 234 | 105 | |||||||||||||||||||
| Income from continuing operations | 572 | 155 | 711 | 178 | |||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | (13) | (40) | (27) | 114 | |||||||||||||||||||
| Net income | 559 | 115 | 684 | 292 | |||||||||||||||||||
| Dividends on redeemable non-controlling interests | (1) | (1) | (3) | (3) | |||||||||||||||||||
| Net income attributable to the Company shareholders | $ | 558 | $ | 114 | $ | 681 | $ | 289 | |||||||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||||
| Net income (loss) attributable to the Company shareholders — | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Continuing operations | $ | 1.75 | $ | 0.47 | $ | 2.18 | $ | 0.53 | |||||||||||||||
| Discontinued operations | (0.04) | (0.13) | (0.08) | 0.35 | |||||||||||||||||||
| $ | 1.71 | $ | 0.34 | $ | 2.10 | $ | 0.88 | ||||||||||||||||
| Diluted | |||||||||||||||||||||||
| Continuing operations | $ | 1.75 | $ | 0.47 | $ | 2.18 | $ | 0.53 | |||||||||||||||
| Discontinued operations | (0.04) | (0.13) | (0.08) | 0.35 | |||||||||||||||||||
| $ | 1.71 | $ | 0.34 | $ | 2.10 | $ | 0.88 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net income | $ | 559 | $ | 115 | $ | 684 | $ | 292 | |||||||||||||||
| Other comprehensive income, net of tax – | |||||||||||||||||||||||
| Financial derivatives | (5) | (35) | 37 | (6) | |||||||||||||||||||
| Defined benefit pension and other postretirement benefit plans | (14) | 2 | (11) | (4) | |||||||||||||||||||
| Foreign currency translations | 291 | 127 | 262 | 189 | |||||||||||||||||||
| Total other comprehensive income, net of tax | 272 | 94 | 288 | 179 | |||||||||||||||||||
| Comprehensive income | 831 | 209 | 972 | 471 | |||||||||||||||||||
| Dividends on redeemable non-controlling interests | (1) | (1) | (3) | (3) | |||||||||||||||||||
| Comprehensive income attributable to the Company shareholders | $ | 830 | $ | 208 | $ | 969 | $ | 468 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED BALANCE SHEETS
| Millions of dollars | June 30, 2026 | December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 2,630 | $ | 3,443 | |||||||
| Restricted cash | 10 | 6 | |||||||||
| Accounts receivable: | |||||||||||
| Trade, net | 3,754 | 2,362 | |||||||||
| Related parties | 214 | 155 | |||||||||
| Inventories | 4,079 | 3,533 | |||||||||
| Prepaid expenses and other current assets | 978 | 612 | |||||||||
| Assets held for sale | — | 757 | |||||||||
| Total current assets | 11,665 | 10,868 | |||||||||
| Operating lease assets | 1,498 | 1,514 | |||||||||
| Property, plant and equipment | 26,026 | 25,802 | |||||||||
| Less: Accumulated depreciation | (10,339) | (9,969) | |||||||||
| Property, plant and equipment, net | 15,687 | 15,833 | |||||||||
| Equity investments | 3,875 | 3,963 | |||||||||
| Goodwill | 705 | 708 | |||||||||
| Intangible assets, net | 394 | 450 | |||||||||
| Other assets | 658 | 667 | |||||||||
| Total assets | $ | 34,482 | $ | 34,003 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED BALANCE SHEETS
| Millions of dollars, except shares and par value data | June 30, 2026 | December 31, 2025 | |||||||||
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current maturities of long-term debt | $ | 1,461 | $ | 588 | |||||||
| Short-term debt | 234 | 226 | |||||||||
| Accounts payable: | |||||||||||
| Trade | 2,738 | 2,250 | |||||||||
| Related parties | 495 | 444 | |||||||||
| Accrued and other current liabilities | 2,179 | 1,956 | |||||||||
| Liabilities held for sale | — | 665 | |||||||||
| Total current liabilities | 7,107 | 6,129 | |||||||||
| Long-term debt | 11,215 | 12,124 | |||||||||
| Operating lease liabilities | 1,310 | 1,327 | |||||||||
| Other liabilities | 1,704 | 1,900 | |||||||||
| Deferred income taxes | 2,352 | 2,316 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable non-controlling interests | 114 | 114 | |||||||||
| Shareholders’ equity: | |||||||||||
| Ordinary shares, €0.04 par value, 1,275 million shares authorized, 323,004,034 and 322,084,769 shares outstanding, respectively | 19 | 19 | |||||||||
| Additional paid-in capital | 6,130 | 6,148 | |||||||||
| Retained earnings | 7,044 | 6,812 | |||||||||
| Accumulated other comprehensive loss | (1,022) | (1,310) | |||||||||
| Treasury stock, at cost, 17,418,464 and 18,337,729 ordinary shares, respectively | (1,500) | (1,587) | |||||||||
| Total Company share of shareholders’ equity | 10,671 | 10,082 | |||||||||
| Non-controlling interests | 9 | 11 | |||||||||
| Total equity | 10,680 | 10,093 | |||||||||
| Total liabilities, redeemable non-controlling interests and equity | $ | 34,482 | $ | 34,003 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six Months Ended June 30, | |||||||||||
| Millions of dollars | 2026 | 2025 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 684 | $ | 292 | |||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization | 689 | 655 | |||||||||
| Impairments | 89 | 32 | |||||||||
| Amortization of debt-related costs | 6 | 5 | |||||||||
| Share-based compensation | 66 | 55 | |||||||||
| Equity investments— | |||||||||||
| Equity income | (52) | (8) | |||||||||
| Distributions of earnings, net of tax | 13 | 18 | |||||||||
| Deferred income tax benefit | (48) | (30) | |||||||||
| Loss on sale of business | 734 | — | |||||||||
| Changes in assets and liabilities that provided (used) cash: | |||||||||||
| Accounts receivable | (1,692) | (81) | |||||||||
| Inventories | (521) | (85) | |||||||||
| Accounts payable | 721 | (433) | |||||||||
| Other, net | (206) | (648) | |||||||||
| Net cash provided by (used in) operating activities | 483 | (228) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Expenditures for property, plant and equipment | (539) | (1,022) | |||||||||
| Cash contribution to disposed businesses | (310) | — | |||||||||
| Proceeds from settlement of net investment hedges | — | 284 | |||||||||
| Payments for settlement of net investment hedges | — | (234) | |||||||||
| Other, net | 55 | 38 | |||||||||
| Net cash used in investing activities | (794) | (934) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Repurchases of Company ordinary shares | — | (201) | |||||||||
| Dividends paid - common stock | (448) | (878) | |||||||||
| Issuance of long-term debt | — | 499 | |||||||||
| Payments of debt issuance costs | — | (5) | |||||||||
| Other, net | (21) | (13) | |||||||||
| Net cash used in financing activities | (469) | (598) | |||||||||
| Effect of exchange rate changes on cash | (29) | 76 | |||||||||
| Decrease in cash and cash equivalents and restricted cash | (809) | (1,684) | |||||||||
| Cash and cash equivalents and restricted cash at beginning of period | 3,449 | 3,388 | |||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 2,640 | $ | 1,704 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2026 | $ | 19 | $ | (1,520) | $ | 6,124 | $ | 6,711 | $ | (1,294) | $ | 10,040 | $ | 11 | |||||||||||||||||||||||||||
| Net income | — | — | — | 559 | — | 559 | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 272 | 272 | — | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 20 | 6 | (1) | — | 25 | — | ||||||||||||||||||||||||||||||||||
| Dividends - common stock ($0.69 per share) | — | — | — | (224) | — | (224) | — | ||||||||||||||||||||||||||||||||||
| Dividends - redeemable non-controlling interests ($15.00 per share) | — | — | — | (1) | — | (1) | — | ||||||||||||||||||||||||||||||||||
| Distributions to non-controlling interests | — | — | — | — | — | — | (2) | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2026 | $ | 19 | $ | (1,500) | $ | 6,130 | $ | 7,044 | $ | (1,022) | $ | 10,671 | $ | 9 | |||||||||||||||||||||||||||
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | $ | 19 | $ | (1,559) | $ | 6,132 | $ | 9,064 | $ | (1,447) | $ | 12,209 | $ | 12 | |||||||||||||||||||||||||||
| Net income | — | — | — | 115 | — | 115 | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 94 | 94 | — | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 22 | 7 | (3) | — | 26 | — | ||||||||||||||||||||||||||||||||||
| Dividends - common stock ($1.37 per share) | — | — | — | (443) | — | (443) | — | ||||||||||||||||||||||||||||||||||
| Dividends - redeemable non-controlling interests ($15.00 per share) | — | — | — | (1) | — | (1) | — | ||||||||||||||||||||||||||||||||||
| Repurchases of Company ordinary shares | — | (91) | — | — | — | (91) | — | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | 19 | $ | (1,628) | $ | 6,139 | $ | 8,732 | $ | (1,353) | $ | 11,909 | $ | 12 | |||||||||||||||||||||||||||
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2025 | $ | 19 | $ | (1,587) | $ | 6,148 | $ | 6,812 | $ | (1,310) | $ | 10,082 | $ | 11 | |||||||||||||||||||||||||||
| Net income | — | — | — | 684 | — | 684 | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 288 | 288 | — | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 87 | (18) | (1) | — | 68 | — | ||||||||||||||||||||||||||||||||||
| Dividends - common stock ($1.38 per share) | — | — | — | (448) | — | (448) | — | ||||||||||||||||||||||||||||||||||
| Dividends - redeemable non-controlling interests ($30.00 per share) | — | — | — | (3) | — | (3) | — | ||||||||||||||||||||||||||||||||||
| Distributions to non-controlling interests | — | — | — | — | — | — | (2) | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2026 | $ | 19 | $ | (1,500) | $ | 6,130 | $ | 7,044 | $ | (1,022) | $ | 10,671 | $ | 9 |
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | 19 | $ | (1,500) | $ | 6,150 | $ | 9,325 | $ | (1,532) | $ | 12,462 | $ | 12 | |||||||||||||||||||||||||||
| Net income | — | — | — | 292 | — | 292 | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 179 | 179 | — | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 73 | (11) | (4) | — | 58 | — | ||||||||||||||||||||||||||||||||||
| Dividends - common stock ($2.71 per share) | — | — | — | (878) | — | (878) | — | ||||||||||||||||||||||||||||||||||
| Dividends - redeemable non-controlling interests ($30.00 per share) | — | — | — | (3) | — | (3) | — | ||||||||||||||||||||||||||||||||||
| Repurchases of Company ordinary shares | — | (201) | — | — | — | (201) | — | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | 19 | $ | (1,628) | $ | 6,139 | $ | 8,732 | $ | (1,353) | $ | 11,909 | $ | 12 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
TABLE OF CONTENTS
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
LyondellBasell Industries N.V. is a limited liability company (Naamloze Vennootschap) incorporated under Dutch law by deed of incorporation dated October 15, 2009. Unless otherwise indicated, the “Company,” “we,” “us,” “our” or similar words are used to refer to LyondellBasell Industries N.V. together with its consolidated subsidiaries (“LyondellBasell N.V.”). LyondellBasell N.V. is a worldwide manufacturer of chemicals and polymers, a significant producer of gasoline blending components and a developer and licensor of technologies for the production of polymers.
The accompanying unaudited Consolidated Financial Statements have been prepared from the books and records of LyondellBasell N.V. in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement have been included. These statements contain some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The results for interim periods are not necessarily indicative of results for the entire year.
In February 2025, we ceased business operations at our Houston refinery. Accordingly, our refining business, previously disclosed as the Refining segment, is reported as a discontinued operation. The related operating results of our refining business are reported as discontinued operations for all periods presented. Discontinued operations also include costs associated with the closure and dismantlement of our Berre refinery.
2. Accounting and Reporting Changes
Recently Adopted Guidance
Measurement of Credit Losses—In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. We elected the practical expedient provided by this ASU for estimating expected credit losses on current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The guidance is effective for annual reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods. The adoption of this guidance at January 1, 2026 did not have a material impact on our Consolidated Financial Statements.
Accounting Guidance Issued But Not Adopted as of June 30, 2026
*Environmental Credits—*In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818). This ASU provides guidance for recognition, measurement, presentation, and disclosure requirements for all entities that generate, purchase, or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits. The guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods and must be applied using a retrospective approach. Early adoption is permitted. We have not yet completed our assessment of the impact this adoption will have on our Consolidated Financial Statements.
*Grants—*In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. This ASU provides guidance for recognition, measurement, and presentation of government grants. The guidance is effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods and may be applied using either a modified prospective, a modified retrospective or a retrospective approach. Early adoption is permitted. The adoption of this guidance will not have a material
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
impact on our Consolidated Financial Statements.
*Accounting for Software Costs—*In September 2025, the FASB issued ASU 2025-06, Intangibles— Goodwill and Other— Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This guidance amends certain aspects of the accounting for and disclosure of software costs, including when entities start capitalizing eligible costs. This guidance also supersedes existing guidance on website development costs. The guidance is effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. We have not yet completed our assessment of the impact this adoption will have on our Consolidated Financial Statements.
Expense Disaggregation Disclosures—In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income —Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This guidance requires incremental disclosures about specific expense categories, including, but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. While permitted, we do not plan to early adopt this guidance. The guidance may be applied either prospectively or retrospectively. The adoption of this guidance will not have a material impact on our Consolidated Financial Statements as the guidance relates only to disclosure.
3. Discontinued Operations
Discontinued operations consists primarily of our refining business. The following table presents components of Income (loss) from discontinued operations, net of tax:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Sales and other operating revenues | $ | — | $ | 326 | $ | — | $ | 1,525 | |||||||||||||||
| Cost of sales | — | 369 | — | 1,370 | |||||||||||||||||||
| Selling, general and administrative expenses | — | 2 | — | 4 | |||||||||||||||||||
| Operating income (loss) | — | (45) | — | 151 | |||||||||||||||||||
| Other expense, net | (17) | (2) | (35) | (2) | |||||||||||||||||||
| Provision for (benefit from) income taxes | (4) | (7) | (8) | 35 | |||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | $ | (13) | $ | (40) | $ | (27) | $ | 114 |
4. Revenues
*Contract Balances—*Contract liabilities were $102 million and $125 million as of June 30, 2026 and December 31, 2025, respectively. Revenue recognized in each reporting period that was included in the contract liability balance at the beginning of the period was immaterial.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
*Disaggregation of Revenues—*The following table presents our revenues disaggregated by key products:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||
| Olefins and co-products | $ | 1,392 | $ | 933 | $ | 2,578 | $ | 1,999 | |||||||||||||||
| Polyethylene | 2,245 | 1,882 | 3,926 | 3,660 | |||||||||||||||||||
| Polypropylene | 1,683 | 1,565 | 3,027 | 3,103 | |||||||||||||||||||
| Propylene oxide and derivatives | 647 | 556 | 1,165 | 1,144 | |||||||||||||||||||
| Oxyfuels and related products | 1,417 | 1,151 | 2,551 | 2,282 | |||||||||||||||||||
| Intermediate chemicals | 619 | 511 | 967 | 1,052 | |||||||||||||||||||
| Compounding and solutions | 1,006 | 913 | 1,879 | 1,817 | |||||||||||||||||||
| Other | 168 | 147 | 281 | 278 | |||||||||||||||||||
| Total | $ | 9,177 | $ | 7,658 | $ | 16,374 | $ | 15,335 |
The following table presents our revenues disaggregated by geography, based upon the location of the customer:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||
| United States | $ | 3,573 | $ | 2,654 | $ | 6,296 | $ | 5,509 | |||||||||||||||
| Germany | 748 | 557 | 1,336 | 1,173 | |||||||||||||||||||
| Mexico | 494 | 400 | 821 | 809 | |||||||||||||||||||
| China | 378 | 480 | 711 | 960 | |||||||||||||||||||
| Italy | 372 | 359 | 690 | 686 | |||||||||||||||||||
| Japan | 368 | 286 | 626 | 604 | |||||||||||||||||||
| France | 285 | 298 | 582 | 563 | |||||||||||||||||||
| Poland | 268 | 210 | 476 | 413 | |||||||||||||||||||
| The Netherlands | 201 | 228 | 399 | 394 | |||||||||||||||||||
| Other | 2,490 | 2,186 | 4,437 | 4,224 | |||||||||||||||||||
| Total | $ | 9,177 | $ | 7,658 | $ | 16,374 | $ | 15,335 |
5. Accounts Receivable
Accounts receivable are reflected in the Consolidated Balance Sheets, net of allowance for credit losses of $3 million as of June 30, 2026 and December 31, 2025.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
6. Inventories
Inventories consisted of the following components:
| Millions of dollars | June 30, 2026 | December 31, 2025 | |||||||||
| Finished goods | $ | 2,438 | $ | 2,238 | |||||||
| Work-in-process | 131 | 69 | |||||||||
| Raw materials and supplies | 1,510 | 1,226 | |||||||||
| Total inventories | $ | 4,079 | $ | 3,533 |
During the first six months of 2025, inventory liquidations associated with our exit from the refinery business generated a last-in, first-out (“LIFO”) benefit of $196 million, net of tax, or $0.60 per diluted share. This benefit is reflected in Income (loss) from discontinued operations, net of tax in the Consolidated Statements of Income.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
7. Debt
Long-term loans, notes and other debt, net of unamortized discount, debt issuance cost and cumulative fair value hedging adjustments, consisted of the following:
| Millions of dollars | June 30, 2026 | December 31, 2025 | |||||||||
| Senior Notes due 2055, $1,000 million, 4.625% ($15 million of discount; $10 million of debt issuance cost) | $ | 975 | $ | 975 | |||||||
| Guaranteed Notes due 2027, $300 million, 8.1% | 300 | 300 | |||||||||
| Issued by LYB International Finance B.V.: | |||||||||||
| Guaranteed Notes due 2043, $750 million, 5.25% ($17 million of discount; $6 million of debt issuance cost) | 727 | 727 | |||||||||
| Guaranteed Notes due 2044, $1,000 million, 4.875% ($9 million of discount; $8 million of debt issuance cost) | 983 | 983 | |||||||||
| Issued by LYB International Finance II B.V.: | |||||||||||
| Guaranteed Notes due 2026, €500 million, 0.875% | 569 | 585 | |||||||||
| Guaranteed Notes due 2027, $1,000 million, 3.5% ($1 million of discount) | 589 | 590 | |||||||||
| Guaranteed Notes due 2031, €500 million, 1.625% ($3 million of discount; $2 million of debt issuance cost) | 560 | 577 | |||||||||
| Issued by LYB International Finance III LLC: | |||||||||||
| Guaranteed Notes due 2030, $500 million, 3.375% | 144 | 142 | |||||||||
| Guaranteed Notes due 2030, $500 million, 2.25% ($2 million of discount; $2 million of debt issuance cost) | 481 | 481 | |||||||||
| Guaranteed Notes due 2031, $500 million, 5.125% ($1 million of discount; $4 million of debt issuance cost) | 495 | 495 | |||||||||
| Guaranteed Notes due 2033, $500 million, 5.625% ($4 million of debt issuance cost) | 496 | 496 | |||||||||
| Guaranteed Notes due 2034, $750 million, 5.5% ($5 million of discount, $6 million of debt issuance cost) | 739 | 739 | |||||||||
| Guaranteed Notes due 2035, $500 million, 6.150% ($1 million of discount, $5 million of debt issuance cost | 494 | 494 | |||||||||
| Guaranteed Notes due 2036, $1,000 million, 5.875% ($7 million of discount, $9 million of debt issuance cost | 984 | 984 | |||||||||
| Guaranteed Notes due 2040, $750 million, 3.375% ($1 million of discount; $6 million of debt issuance cost) | 743 | 743 | |||||||||
| Guaranteed Notes due 2049, $1,000 million, 4.2% ($13 million of discount; $10 million of debt issuance cost) | 977 | 977 | |||||||||
| Guaranteed Notes due 2050, $1,000 million, 4.2% ($6 million of discount; $10 million of debt issuance cost) | 970 | 971 | |||||||||
| Guaranteed Notes due 2051, $1,000 million, 3.625% ($2 million of discount; $9 million of debt issuance cost) | 950 | 952 | |||||||||
| Guaranteed Notes due 2060, $500 million, 3.8% ($4 million of discount; $5 million of debt issuance cost) | 485 | 487 | |||||||||
| Other | 15 | 14 | |||||||||
| Total | 12,676 | 12,712 | |||||||||
| Less current maturities | (1,461) | (588) | |||||||||
| Long-term debt | $ | 11,215 | $ | 12,124 |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Fair value hedging adjustments associated with the fair value hedge accounting of our fixed-for-floating interest rate swaps for the applicable periods are as follows:
| Gains (Losses) | Cumulative Fair Value Hedging Adjustments Included in Carrying Amount of Debt | |||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | June 30, | December 31, | |||||||||||||||||||||||||||||||||||
| Millions of dollars | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2025, 1.25% | $ | — | $ | (1) | $ | — | $ | (3) | $ | — | $ | — | ||||||||||||||||||||||||||
| Guaranteed Notes due 2026, 0.875% | (1) | (1) | (1) | (1) | 1 | 2 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2027, 3.5% | — | (1) | 1 | (3) | 1 | — | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2030, 3.375% | — | (2) | — | (5) | (2) | (2) | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2030, 2.25% | 1 | (2) | 1 | (5) | 15 | 14 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2031, 1.625% | (1) | (1) | — | 1 | 5 | 5 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2050, 4.2% | 1 | (1) | 1 | (2) | 14 | 13 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2051, 3.625% | 1 | (9) | 2 | (23) | 39 | 37 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2060, 3.8% | 1 | (2) | 2 | (4) | 6 | 4 | ||||||||||||||||||||||||||||||||
| Total | $ | 2 | $ | (20) | $ | 6 | $ | (45) | $ | 79 | $ | 73 |
Fair value adjustments are recognized in Interest expense in the Consolidated Statements of Income.
Long-Term Debt
Senior Revolving Credit Facility—Our $3,750 million senior unsecured revolving credit facility (the “Senior Revolving Credit Facility”), which expires in July 2029, may be used for dollar and euro denominated borrowings. As of June 30, 2026, we had no borrowings or letters of credit outstanding and $3,750 million of unused availability under this facility.
Short-Term Debt
U.S. Receivables Facility—Effective June 2026, we amended the U.S. Receivables Facility to reduce the maximum amount available from $900 million to $700 million and extended the term of the facility to June 2027. As of June 30, 2026, we had no borrowings or letters of credit outstanding and $700 million unused availability under this facility.
Commercial Paper Program—We have a commercial paper program under which we may issue up to $2,500 million of privately placed, unsecured, short-term promissory notes (“commercial paper”). As of June 30, 2026, we had no borrowings of outstanding commercial paper.
Precious Metal Financings—At June 30, 2026 and December 31, 2025, we had $234 million and $226 million, respectively, of Short-term debt related to our precious metal financings.
Weighted Average Interest Rate—As of June 30, 2026 and December 31, 2025, our weighted average interest rate on outstanding Short-term debt was 2.8% and 2.7%, respectively.
Additional Information
Debt Compliance—As of June 30, 2026, we are in compliance with our debt covenants.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
8. Financial Instruments and Fair Value Measurements
We are exposed to market risks, such as changes in commodity pricing, interest rates and currency exchange rates. To manage the volatility related to these exposures, we selectively enter into derivative contracts pursuant to our risk management policies.
Financial Instruments Measured at Fair Value on a Recurring Basis—The following table summarizes financial instruments outstanding for the periods presented that are measured at fair value on a recurring basis:
| Fair Value | |||||||||||||||||||||||||||||
| Millions of dollars | June 30, 2026 | December 31, 2025 | Balance Sheet Classification | ||||||||||||||||||||||||||
| Assets– | |||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | $ | 46 | $ | — | Prepaid expenses and other current assets | ||||||||||||||||||||||||
| Commodities | 6 | 4 | Other assets | ||||||||||||||||||||||||||
| Foreign currency | 19 | 19 | Prepaid expenses and other current assets | ||||||||||||||||||||||||||
| Foreign currency | 5 | — | Other assets | ||||||||||||||||||||||||||
| Interest rates | 19 | 16 | Prepaid expenses and other current assets | ||||||||||||||||||||||||||
| Interest rates | 1 | — | Other assets | ||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | 34 | 5 | Prepaid expenses and other current assets | ||||||||||||||||||||||||||
| Total | $ | 130 | $ | 44 | |||||||||||||||||||||||||
| Liabilities– | |||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | $ | 31 | $ | 33 | Accrued and other current liabilities | ||||||||||||||||||||||||
| Commodities | 10 | 8 | Other liabilities | ||||||||||||||||||||||||||
| Foreign currency | 77 | 15 | Accrued and other current liabilities | ||||||||||||||||||||||||||
| Foreign currency | 76 | 199 | Other liabilities | ||||||||||||||||||||||||||
| Interest rates | 35 | 27 | Accrued and other current liabilities | ||||||||||||||||||||||||||
| Interest rates | 75 | 79 | Other liabilities | ||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | 14 | 42 | Accrued and other current liabilities | ||||||||||||||||||||||||||
| Foreign currency | 7 | 5 | Accrued and other current liabilities | ||||||||||||||||||||||||||
| Total | $ | 325 | $ | 408 |
The financial instruments in the table above are classified as Level 2. We present the gross assets and liabilities of our derivative instruments on the Consolidated Balance Sheets.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Financial Instruments Not Measured at Fair Value on a Recurring Basis—The following table presents the carrying value and estimated fair value of our short-term precious metal financings and Long-term debt:
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Millions of dollars | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
| Precious metal financings | $ | 234 | $ | 216 | $ | 226 | $ | 263 | |||||||||||||||
| Long-term debt | 11,204 | 9,602 | 12,113 | 10,501 | |||||||||||||||||||
| Total | $ | 11,438 | $ | 9,818 | $ | 12,339 | $ | 10,764 |
The financial instruments in the table above are classified as Level 2. Our other financial instruments classified within Current assets and Current liabilities have a short maturity and their carrying value approximates fair value.
Derivative Instruments:
Commodity Prices—The following table presents the notional amounts of our outstanding commodity derivative instruments:
| Notional Amount | Unit of Measure | Maturity Date | |||||||||||||||||||||||||||
| Millions of units | June 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||
| Natural gas | 40 | 51 | MMBtu | 2026 to 2028 | |||||||||||||||||||||||||
| Ethane | 9 | 13 | Bbls | 2026 to 2028 | |||||||||||||||||||||||||
| Power | 1 | 1 | MWhs | 2026 to 2028 | |||||||||||||||||||||||||
| Other commodities | 2 | — | Bbls | 2026 to 2027 | |||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
| Ethane | 5 | 6 | Bbls | 2026 to 2027 | |||||||||||||||||||||||||
| Other commodities | 2 | 3 | Bbls | 2026 to 2028 | |||||||||||||||||||||||||
Interest Rates—The following table presents the notional amounts of our outstanding interest rate derivative instruments:
| Notional Amount | |||||||||||||||||||||||||||||
| Millions of dollars | June 30, 2026 | December 31, 2025 | Maturity Date | ||||||||||||||||||||||||||
| Fair value hedges | $ | 2,078 | $ | 1,885 | 2026 to 2031 |
Foreign Currency Rates—The following table presents the notional amounts of our outstanding foreign currency derivative instruments:
| Notional Amount | |||||||||||||||||||||||
| Millions of dollars | June 30, 2026 | December 31, 2025 | Maturity Date | ||||||||||||||||||||
| Net investment hedges | $ | 2,465 | $ | 2,465 | 2027 to 2032 | ||||||||||||||||||
| Cash flow hedges | 294 | 294 | 2027 | ||||||||||||||||||||
| Not designated | 186 | 295 | 2026 | ||||||||||||||||||||
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Impact on Earnings and Other Comprehensive Income—The following tables summarize the pre-tax effect of derivative instruments recorded in Accumulated other comprehensive income (“AOCI”), the gains (losses) reclassified from AOCI to earnings and additional gains (losses) recognized directly in earnings:
| Effects of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | Income Statement | ||||||||||||||||||||||||||||||||||||||||
| Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified to Income from AOCI | Additional Gain (Loss) Recognized in Income | Income Statement | ||||||||||||||||||||||||||||||||||||||
| Millions of dollars | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | Classification | ||||||||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | $ | 25 | $ | — | $ | (4) | $ | — | $ | — | $ | — | Sales and other operating revenues | ||||||||||||||||||||||||||||
| Commodities | (33) | (49) | 3 | 4 | — | — | Cost of sales | ||||||||||||||||||||||||||||||||||
| Foreign currency | (10) | (273) | (2) | 24 | 8 | 13 | Interest expense | ||||||||||||||||||||||||||||||||||
| Foreign currency | — | — | (39) | — | — | — | Loss on sale of business | ||||||||||||||||||||||||||||||||||
| Interest rates | — | — | 1 | 1 | (10) | 7 | Interest expense | ||||||||||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | — | — | — | — | (4) | — | Sales and other operating revenues | ||||||||||||||||||||||||||||||||||
| Commodities | — | — | — | — | 54 | (17) | Cost of sales | ||||||||||||||||||||||||||||||||||
| Foreign currency | — | — | — | — | (2) | (52) | Other income, net | ||||||||||||||||||||||||||||||||||
| Total | $ | (18) | $ | (322) | $ | (41) | $ | 29 | $ | 46 | $ | (49) |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
| Effects of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | Income Statement | ||||||||||||||||||||||||||||||||||||||||
| Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified to Income from AOCI | Additional Gain (Loss) Recognized in Income | Income Statement | ||||||||||||||||||||||||||||||||||||||
| Millions of dollars | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | Classification | ||||||||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | $ | 25 | $ | — | $ | (4) | $ | — | $ | — | $ | — | Sales and other operating revenues | ||||||||||||||||||||||||||||
| Commodities | 25 | (12) | 1 | 2 | — | — | Cost of sales | ||||||||||||||||||||||||||||||||||
| Foreign currency | 64 | (392) | (9) | 35 | 18 | 25 | Interest expense | ||||||||||||||||||||||||||||||||||
| Foreign currency | — | — | (39) | — | — | — | Loss on sale of business | ||||||||||||||||||||||||||||||||||
| Interest rates | — | — | 2 | 2 | (22) | 20 | Interest expense | ||||||||||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | — | — | — | — | (12) | — | Sales and other operating revenues | ||||||||||||||||||||||||||||||||||
| Commodities | — | — | — | — | 69 | (36) | Cost of sales | ||||||||||||||||||||||||||||||||||
| Commodities | — | — | — | — | — | 8 | Income (loss) from discontinued operations, net of tax | ||||||||||||||||||||||||||||||||||
| Foreign currency | — | — | — | — | 2 | (81) | Other income, net | ||||||||||||||||||||||||||||||||||
| Total | $ | 114 | $ | (404) | $ | (49) | $ | 39 | $ | 55 | $ | (64) |
As of June 30, 2026, on a pre-tax basis, $5 million is scheduled to be reclassified from AOCI as an increase to Interest expense over the next twelve months.
Other Financial Instruments:
Cash and Cash Equivalents—As of June 30, 2026 and December 31, 2025, we had marketable securities classified as Cash and cash equivalents of $1,434 million and $2,030 million, respectively.
9. Income Taxes
For interim tax reporting, we estimate an annual effective tax rate which is applied to the year-to-date ordinary income. Tax effects of significant, unusual, or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Our effective income tax rate fluctuates based on, among other factors, changes in pre-tax income in countries with varying statutory tax rates, changes in valuation allowances, changes in foreign exchange gains or losses, the amount of nontaxable or nondeductible items, changes in unrecognized tax benefits associated with uncertain tax positions and changes in tax laws.
Our effective income tax rate for the second quarter of 2026 was 29.2% compared to 30.8% for the second quarter of 2025. The lower effective income tax rate for the second quarter of 2026 was due to changes in earnings in countries with varying statutory tax rates coupled with an increase in exempt income that decreased the effective income tax rate by 8.5 percentage points and 5.7 percentage points, respectively. These decreases were partially offset by an increase in our effective income tax rate of 14.2 percentage points due to the impact of the divestiture of select European assets and the associated businesses, which is largely nondeductible for tax, recognized discretely in the second quarter of 2026.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Our effective income tax rate for the first six months of 2026 was 24.8% compared to 37.1% for the first six months of 2025. The lower effective income tax rate for the first six months of 2026 was due to changes in earnings in countries with varying statutory tax rates coupled with fluctuations in foreign exchange losses and exempt income that decreased the effective income tax rate by 11.0 percentage points, 5.8 percentage points, and 5.3 percentage points, respectively. These decreases were partially offset by an increase in our effective income tax rate of 11.0 percentage points due to the impact of the divestiture of select European assets and the associated businesses, which is largely nondeductible for tax, recognized discretely in the first six months of 2026.
10. Commitments and Contingencies
Commitments—We have various purchase commitments for materials, supplies and services incidental to the ordinary conduct of business, generally for quantities required for our businesses and at prevailing market prices. These commitments are designed to ensure sources of supply and are not expected to be in excess of normal requirements. Additionally, we have capital expenditure commitments, which we incur in our normal course of business.
Financial Assurance Instruments—We have obtained letters of credit, performance and surety bonds and have issued financial and performance guarantees to support trade payables, potential liabilities and other obligations. Considering the frequency of claims made against the financial instruments we use to support our obligations, and the magnitude of those financial instruments in light of our current financial position, we do not expect that any claims made against or draws on these financial instruments would have a material adverse effect on the Consolidated Financial Statements. We have not experienced any unmanageable difficulties in obtaining the required financial assurance instruments for our current operations.
Environmental Remediation—Accrued liabilities for future environmental remediation costs at current and former plant sites, as well as other remediation sites, totaled $98 million as of June 30, 2026, and $178 million as of December 31, 2025, of which $74 million was classified as Liabilities held for sale. The remaining amounts are included in Accrued and other current liabilities and Other liabilities on the Consolidated Balance Sheets.
As of June 30, 2026, the accrued liabilities for individual sites range from less than $1 million to $40 million. The remediation expenditures are expected to occur over a number of years and are not concentrated in any single year. In our opinion, it is reasonably possible that losses in excess of the liabilities recorded may have been incurred. However, we cannot estimate any amount or range of such possible additional losses. New information about sites, new technology or future developments, such as involvement in investigations by regulatory agencies, could require us to reassess our potential exposure related to environmental matters.
Indemnification—We are parties to various indemnification arrangements, including arrangements entered into in connection with acquisitions, divestitures and the formation and dissolution of joint ventures. Pursuant to these arrangements, we provide indemnification to and/or receive indemnification from other parties in connection with liabilities that may arise in connection with the transactions and in connection with activities prior to completion of the transactions. These indemnification arrangements typically include provisions pertaining to third-party claims relating to environmental and tax matters, as well as various types of litigation. As of June 30, 2026, we had not accrued any significant amounts for our indemnification obligations, and we are not aware of other circumstances that would likely lead to significant future indemnification obligations. We cannot determine with certainty the potential amount of future payments under the indemnification arrangements until events arise that would trigger a liability under the arrangements.
As part of our technology licensing contracts, we give indemnifications to our licensees for liabilities arising from possible patent infringement claims with respect to certain proprietary licensed technologies. Such indemnifications have a stated maximum amount and generally cover a period of 5 to 10 years.
*Legal Proceedings—*We are subject to various lawsuits and claims, including, but not limited to, matters involving contract disputes, tort claims, tax proceedings, and regulatory disputes alleging environmental damage, personal injury, and/or property damage, some of which are covered by insurance. We vigorously defend ourselves and prosecute these matters as appropriate.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor legal proceedings in which we are a party. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial, mediation or other resolution. We regularly assess the adequacy of legal accruals based on our professional judgment, experience and the information available regarding our cases.
Based on consideration of all relevant facts and circumstances, we do not believe the ultimate outcome of any currently pending lawsuit or claim against us will have a material adverse effect upon our operations, financial condition or Consolidated Financial Statements.
11. Shareholders’ Equity and Redeemable Non-controlling Interests
Shareholders’ Equity
Dividend Distributions—The following table summarizes the quarterly dividends paid in the period presented:
| Millions of dollars, except per share amounts | Dividend Per Ordinary Share | Aggregate Dividends Paid | Date of Record | ||||||||||||||
| March 2026 | $ | 0.69 | $ | 224 | March 2, 2026 | ||||||||||||
| June 2026 | 0.69 | 224 | June 1, 2026 | ||||||||||||||
| $ | 1.38 | $ | 448 |
Share Repurchase Authorization—In May 2026, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares, through November 22, 2027 (“2026 Share Repurchase Authorization”), which superseded any prior repurchase authorizations. The timing and amount of these repurchases, which are determined based on our evaluation of market conditions and other factors, may be executed from time to time through open market or privately negotiated transactions. In September 2025, we amended our Senior Revolving Credit Facility which now restricts share repurchases except to offset dilution. The repurchased shares, which are recorded at cost, are classified as Treasury stock and may be retired or used for general corporate purposes, including for various employee benefit and compensation plans. As of July 29, 2026, we had approximately 34.0 million shares remaining under the current authorization.
Total cash paid for share repurchases for the six months ended June 30, 2025 was $201 million. There were no repurchases during the six months ended June 30, 2026.
The following table summarizes our share repurchase activity for the six months ended June 30, 2025:
| Millions of dollars, except shares and per share amounts | Shares Repurchased | Average Purchase Price Per Share | Total Purchase Price, Including Commissions and Fees | |||||||||||||||||
| 2024 Share Repurchase Authorization | 3,037,987 | $ | 66.01 | $ | 201 | |||||||||||||||
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Ordinary Shares—The changes in the outstanding amounts of ordinary shares are as follows:
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Ordinary shares outstanding: | |||||||||||
| Beginning balance | 322,084,769 | 323,889,832 | |||||||||
| Share-based compensation | 593,498 | 491,005 | |||||||||
| Employee stock purchase plan | 325,767 | 284,760 | |||||||||
| Purchase of ordinary shares | — | (3,037,987) | |||||||||
| Ending balance | 323,004,034 | 321,627,610 |
*Treasury Shares—*The changes in the amounts of treasury shares held by the Company are as follows:
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Ordinary shares held as treasury shares: | |||||||||||
| Beginning balance | 18,337,729 | 16,532,666 | |||||||||
| Share-based compensation | (593,498) | (491,005) | |||||||||
| Employee stock purchase plan | (325,767) | (284,760) | |||||||||
| Purchase of ordinary shares | — | 3,037,987 | |||||||||
| Ending balance | 17,418,464 | 18,794,888 |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Accumulated Other Comprehensive Loss—The components of, and after-tax changes in, Accumulated other comprehensive loss as of and for the six months ended June 30, 2026 and 2025 are presented in the following tables.
Foreign currency translation adjustments below include currency translation adjustments as well as gains (losses) on net investment hedges; the associated tax benefits or expenses are calculated separately for each component.
| Millions of dollars | Financial Derivatives | Defined Benefit Pension and Other Postretirement Benefit Plans | Foreign Currency Translation Adjustments | Total | |||||||||||||||||||||||||||||||
| Balance – December 31, 2025 | $ | (133) | $ | (236) | $ | (941) | $ | (1,310) | |||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | 60 | — | (55) | 5 | |||||||||||||||||||||||||||||||
| Tax expense before reclassifications | (16) | — | (12) | (28) | |||||||||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | (10) | (9) | 329 | 310 | |||||||||||||||||||||||||||||||
| Tax (expense) benefit | 3 | (2) | — | 1 | |||||||||||||||||||||||||||||||
| Net other comprehensive income (loss) | 37 | (11) | 262 | 288 | |||||||||||||||||||||||||||||||
| Balance – June 30, 2026 | $ | (96) | $ | (247) | $ | (679) | $ | (1,022) |
| Millions of dollars | Financial Derivatives | Defined Benefit Pension and Other Postretirement Benefit Plans | Foreign Currency Translation Adjustments | Total | |||||||||||||||||||||||||||||||
| Balance – December 31, 2024 | $ | (111) | $ | (281) | $ | (1,140) | $ | (1,532) | |||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | (47) | (3) | 96 | 46 | |||||||||||||||||||||||||||||||
| Tax benefit before reclassifications | 12 | 1 | 93 | 106 | |||||||||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | 39 | (1) | — | 38 | |||||||||||||||||||||||||||||||
| Tax expense | (10) | (1) | — | (11) | |||||||||||||||||||||||||||||||
| Net other comprehensive income (loss) | (6) | (4) | 189 | 179 | |||||||||||||||||||||||||||||||
| Balance – June 30, 2025 | $ | (117) | $ | (285) | $ | (951) | $ | (1,353) |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The amounts reclassified out of each component of Accumulated other comprehensive loss are as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | Affected Line Item on the Consolidated Statements of Income | |||||||||||||||||||||||||||
| Millions of dollars | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Reclassification adjustments for: | |||||||||||||||||||||||||||||
| Financial derivatives: | |||||||||||||||||||||||||||||
| Commodities | $ | (4) | $ | — | $ | (4) | $ | — | Sales and other operating revenues | ||||||||||||||||||||
| Commodities | 3 | 4 | 1 | 2 | Cost of sales | ||||||||||||||||||||||||
| Foreign currency | (2) | 24 | (9) | 35 | Interest expense | ||||||||||||||||||||||||
| Interest rates | 1 | 1 | 2 | 2 | Interest expense | ||||||||||||||||||||||||
| Income tax (expense) benefit | 1 | (7) | 3 | (10) | Provision for income taxes | ||||||||||||||||||||||||
| Financial derivatives, net of tax | (1) | 22 | (7) | 29 | |||||||||||||||||||||||||
| Defined pension: | |||||||||||||||||||||||||||||
| Amortization of defined pension items: | |||||||||||||||||||||||||||||
| Actuarial loss | 3 | 3 | 6 | 6 | Other income, net | ||||||||||||||||||||||||
| Prior service cost | — | 1 | 1 | 2 | Other income, net | ||||||||||||||||||||||||
| Curtailment gain | — | — | — | (9) | Income (loss) from discontinued operations, net of tax | ||||||||||||||||||||||||
| Adjustments realized on divestiture | (16) | — | (16) | — | Loss on sale of business | ||||||||||||||||||||||||
| Income tax (expense) benefit | (1) | (2) | (2) | (1) | Provision for income taxes | ||||||||||||||||||||||||
| Defined pension items, net of tax | (14) | 2 | (11) | (2) | |||||||||||||||||||||||||
| Foreign currency translation adjustments: | |||||||||||||||||||||||||||||
| Adjustments realized on divestiture | 329 | — | 329 | — | Loss on sale of business | ||||||||||||||||||||||||
| Total reclassifications, before tax | 314 | 33 | 310 | 38 | |||||||||||||||||||||||||
| Income tax (expense) benefit | — | (9) | 1 | (11) | Provision for income taxes | ||||||||||||||||||||||||
| Total reclassifications, after tax | $ | 314 | $ | 24 | $ | 311 | $ | 27 | Amount included in net income |
Redeemable Non-controlling Interests
Our redeemable non-controlling interests relate to shares of cumulative perpetual special stock (“redeemable non-controlling interest stock”) issued by a consolidated subsidiary. As of June 30, 2026 and December 31, 2025, we had 112,944 and 112,964 shares of redeemable non-controlling interest stock outstanding, respectively. These shares may be redeemed at any time at the discretion of the holders.
In January and May 2026, we paid cash dividends of $15.00 per share to our redeemable non-controlling interest shareholders of record as of January 15, 2026 and April 15, 2026. These dividends totaled $3 million for each of the six month periods ended June 30, 2026 and 2025.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
12. Per Share Data
Basic earnings (loss) per share is based upon the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share includes the effect of certain stock options and other equity-based compensation awards. Our unvested restricted stock units contain non-forfeitable rights to dividend equivalents and are considered participating securities. We compute basic and diluted earnings (loss) per share under the two-class method.
Earnings (loss) per share data is as follows:
| Three Months Ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Millions of dollars | Continuing Operations | Discontinued Operations | Continuing Operations | Discontinued Operations | |||||||||||||||||||
| Net income (loss) | $ | 572 | $ | (13) | $ | 155 | $ | (40) | |||||||||||||||
| Dividends on redeemable non-controlling interests | (1) | — | (1) | — | |||||||||||||||||||
| Net income attributable to participating securities | (4) | — | (3) | — | |||||||||||||||||||
| Net income (loss) attributable to ordinary shareholders – basic and diluted | $ | 567 | $ | (13) | $ | 151 | $ | (40) | |||||||||||||||
| Millions of shares, except per share amounts | |||||||||||||||||||||||
| Basic weighted average common stock outstanding | 323 | 323 | 322 | 322 | |||||||||||||||||||
| Effect of dilutive securities | — | — | — | — | |||||||||||||||||||
| Diluted weighted average common stock outstanding | 323 | 323 | 322 | 322 | |||||||||||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||||
| Basic | $ | 1.75 | $ | (0.04) | $ | 0.47 | $ | (0.13) | |||||||||||||||
| Diluted | $ | 1.75 | $ | (0.04) | $ | 0.47 | $ | (0.13) | |||||||||||||||
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
| Six Months Ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Millions of dollars | Continuing Operations | Discontinued Operations | Continuing Operations | Discontinued Operations | |||||||||||||||||||
| Net income (loss) | $ | 711 | $ | (27) | $ | 178 | $ | 114 | |||||||||||||||
| Dividends on redeemable non-controlling interests | (3) | — | (3) | — | |||||||||||||||||||
| Net income attributable to participating securities | (4) | — | (5) | — | |||||||||||||||||||
| Net income (loss) attributable to ordinary shareholders – basic and diluted | $ | 704 | $ | (27) | $ | 170 | $ | 114 | |||||||||||||||
| Millions of shares, except per share amounts | |||||||||||||||||||||||
| Basic weighted average common stock outstanding | 323 | 323 | 323 | 323 | |||||||||||||||||||
| Effect of dilutive securities | — | — | — | — | |||||||||||||||||||
| Diluted weighted average common stock outstanding | 323 | 323 | 323 | 323 | |||||||||||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||||
| Basic | $ | 2.18 | $ | (0.08) | $ | 0.53 | $ | 0.35 | |||||||||||||||
| Diluted | $ | 2.18 | $ | (0.08) | $ | 0.53 | $ | 0.35 | |||||||||||||||
13. Segment and Related Information
Our operations are managed by senior executives who report to our Chief Executive Officer, the chief operating decision maker. Discrete financial information is available for each of the segments. The Chief Executive Officer uses EBITDA as the primary measure for reviewing the profitability of our segments and allocating resources to the segments. We define EBITDA as net income before interest, income taxes, and depreciation and amortization. Our chief operating decision maker does not receive information about total assets by reportable segment.
The activities of each of our segments from which they earn revenues and incur expenses are described below:
-
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 and acetyls.
-
Advanced Polymer Solutions (“APS”). Our APS segment produces and markets compounding and solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, and colors.
-
Technology. Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
“Other” includes intersegment eliminations and items that are not directly related or allocated to business operations, such as foreign exchange gains or losses and components of pension and other postretirement benefit costs other than service costs. Sales between segments are made at prices approximating prevailing market prices.
Summarized financial information concerning reportable segments is shown in the following tables for the periods presented:
| Three Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P– Americas | O&P– EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||
| Customers | $ | 2,679 | $ | 2,648 | $ | 2,704 | $ | 1,006 | $ | 140 | $ | — | $ | 9,177 | |||||||||||||||||||||||||||
| Intersegment | 842 | 307 | 43 | 4 | 27 | (1,223) | — | ||||||||||||||||||||||||||||||||||
| 3,521 | 2,955 | 2,747 | 1,010 | 167 | (1,223) | 9,177 | |||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 2,328 | 2,689 | 2,402 | 867 | 71 | (1,218) | 7,139 | ||||||||||||||||||||||||||||||||||
| Impairments | 74 | — | — | — | — | — | 74 | ||||||||||||||||||||||||||||||||||
| (Income) loss from equity investments | (18) | (39) | (1) | 1 | — | — | (57) | ||||||||||||||||||||||||||||||||||
| Loss on sale of business | — | 734 | — | — | — | — | 734 | ||||||||||||||||||||||||||||||||||
| Other items | 117 | 49 | 77 | 85 | 33 | 4 | 365 | ||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 163 | 46 | 108 | 20 | 10 | — | 347 | ||||||||||||||||||||||||||||||||||
| EBITDA | $ | 1,183 | $ | (432) | $ | 377 | $ | 77 | $ | 73 | $ | (9) | $ | 1,269 | |||||||||||||||||||||||||||
| Capital expenditures | $ | 107 | $ | 101 | $ | 40 | $ | 10 | $ | 12 | $ | — | $ | 270 |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P– Americas | O&P– EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||
| Customers | $ | 1,851 | $ | 2,537 | $ | 2,244 | $ | 913 | $ | 113 | $ | — | $ | 7,658 | |||||||||||||||||||||||||||
| Intersegment | 526 | 167 | 31 | 4 | 24 | (752) | — | ||||||||||||||||||||||||||||||||||
| 2,377 | 2,704 | 2,275 | 917 | 137 | (752) | 7,658 | |||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 2,108 | 2,575 | 2,048 | 807 | 82 | (749) | 6,871 | ||||||||||||||||||||||||||||||||||
| Impairments | — | 32 | — | — | — | — | 32 | ||||||||||||||||||||||||||||||||||
| Income from equity investments | (4) | (3) | — | — | — | — | (7) | ||||||||||||||||||||||||||||||||||
| Other items | 124 | 136 | 40 | 98 | 33 | 10 | 441 | ||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 164 | 38 | 99 | 20 | 11 | — | 332 | ||||||||||||||||||||||||||||||||||
| EBITDA | $ | 313 | $ | 2 | $ | 286 | $ | 32 | $ | 33 | $ | (13) | $ | 653 | |||||||||||||||||||||||||||
| Capital expenditures | $ | 305 | $ | 115 | $ | 73 | $ | 19 | $ | 27 | $ | — | $ | 539 |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
| Six Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P- Americas | O&P- EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||
| Customers | $ | 4,599 | $ | 4,948 | $ | 4,727 | $ | 1,879 | $ | 221 | $ | — | $ | 16,374 | |||||||||||||||||||||||||||
| Intersegment | 1,359 | 508 | 80 | 7 | 52 | (2,006) | — | ||||||||||||||||||||||||||||||||||
| 5,958 | 5,456 | 4,807 | 1,886 | 273 | (2,006) | 16,374 | |||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 4,507 | 5,120 | 4,263 | 1,617 | 131 | (2,003) | 13,635 | ||||||||||||||||||||||||||||||||||
| Impairments | 74 | 15 | — | — | — | — | 89 | ||||||||||||||||||||||||||||||||||
| (Income) loss from equity investments | (27) | (24) | (2) | 1 | — | — | (52) | ||||||||||||||||||||||||||||||||||
| Loss on sale of business | — | 734 | — | — | — | — | 734 | ||||||||||||||||||||||||||||||||||
| Other items | 221 | 167 | 157 | 173 | 72 | 12 | 802 | ||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 327 | 89 | 212 | 40 | 21 | — | 689 | ||||||||||||||||||||||||||||||||||
| EBITDA | $ | 1,510 | $ | (467) | $ | 601 | $ | 135 | $ | 91 | $ | (15) | $ | 1,855 | |||||||||||||||||||||||||||
| Capital expenditures | $ | 227 | $ | 162 | $ | 98 | $ | 27 | $ | 25 | $ | — | $ | 539 |
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P– Americas | O&P– EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||
| Customers | $ | 3,808 | $ | 4,972 | $ | 4,526 | $ | 1,817 | $ | 212 | $ | — | $ | 15,335 | |||||||||||||||||||||||||||
| Intersegment | 1,050 | 332 | 47 | 8 | 45 | (1,482) | — | ||||||||||||||||||||||||||||||||||
| 4,858 | 5,304 | 4,573 | 1,825 | 257 | (1,482) | 15,335 | |||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 4,381 | 5,085 | 4,281 | 1,607 | 126 | (1,481) | 13,999 | ||||||||||||||||||||||||||||||||||
| Impairments | — | 32 | — | — | — | — | 32 | ||||||||||||||||||||||||||||||||||
| (Income) loss from equity investments | (11) | 3 | — | — | — | — | (8) | ||||||||||||||||||||||||||||||||||
| Other items | 243 | 242 | 110 | 180 | 67 | 13 | 855 | ||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 319 | 77 | 198 | 40 | 21 | — | 655 | ||||||||||||||||||||||||||||||||||
| EBITDA | $ | 564 | $ | 19 | $ | 380 | $ | 78 | $ | 85 | $ | (14) | $ | 1,112 | |||||||||||||||||||||||||||
| Capital expenditures | $ | 521 | $ | 239 | $ | 164 | $ | 49 | $ | 49 | $ | — | $ | 1,022 |
Other items include Selling, general and administrative (“SG&A”) expenses, Research and development expenses, and Other income, net.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
A reconciliation of EBITDA to Income from continuing operations before income taxes is shown in the following table for each of the periods presented:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| EBITDA: | |||||||||||||||||||||||
| Total segment EBITDA | $ | 1,278 | $ | 666 | $ | 1,870 | $ | 1,126 | |||||||||||||||
| Other EBITDA | (9) | (13) | (15) | (14) | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Depreciation and amortization expense | (347) | (332) | (689) | (655) | |||||||||||||||||||
| Interest expense | (138) | (118) | (276) | (225) | |||||||||||||||||||
| Add: | |||||||||||||||||||||||
| Interest income | 24 | 21 | 55 | 51 | |||||||||||||||||||
| Income from continuing operations before income taxes | $ | 808 | $ | 224 | $ | 945 | $ | 283 |
*Divestiture of European Assets—*On May 1, 2026, we completed the divestiture of select European olefins and polyolefins assets and the associated businesses located in Berre l’Etang (France), Münchsmünster (Germany), Carrington (United Kingdom), and Tarragona (Spain), previously included in our O&P-EAI segment. In connection with the divestiture, we recognized a pre-tax loss of $734 million, subject to post closing adjustments. The loss includes a $310 million cash contribution to the businesses at closing. As of December 31, 2025, the assets and liabilities associated with the disposal group were classified as held for sale in the Consolidated Balance Sheet.
Planned Closure of Brindisi Site—During the second quarter of 2026, we recognized $31 million of employee-related costs associated with the planned closure of our polypropylene unit at our Brindisi site in Italy. These costs are reflected in Cost of sales in the Consolidated Statements of Income and within the O&P-EAI segment.
*Impairment—*We have a 50% ownership interest in a plastic waste sorting facility located in Houston, Texas. In the second quarter of 2026, we determined that our investment was fully impaired and recognized an impairment charge of $74 million in our O&P-Americas segment. The impairment was primarily attributable to the slower than anticipated pace of our circularity investments in the U.S., including our decision to postpone the final investment decision on MoReTec-2. The fair value of our investment was determined using a discounted cash flow model under the income approach. These inputs are considered Level 3 inputs within the fair value hierarchy.
*Closure of European PO Joint Venture—*In March 2025, we announced the permanent closure of our European PO Joint Venture. During the first quarter of 2025, we recognized $117 million of costs associated with the closure which are reflected in Cost of sales in the Consolidated Statements of Income.
Previous: Cover and table of contents · Next: Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS