AVIENT CORPAVNTEarnings & Financial Report
NYSE · Materials · Plastic Materials, Synth Resins & Nonvulcan Elastomers
Avient Corporation is a global materials solutions company headquartered in Avon Lake, Ohio, United States, employing approximately 9,000 people worldwide. Its products include colorants, advanced composites, functional additives and engineered materials.
What changed in AVIENT CORP's 10-K — 2023 vs 2024
Top changes in AVIENT CORP's 2024 10-K
232 paragraphs added · 245 removed · 127 edited across 8 sections
- Item 7. Management's Discussion & Analysis+75 / −84 · 50 edited
- Item 1. Business+57 / −59 · 45 edited
- Item 1A. Risk Factors+55 / −10 · 4 edited
- Item 2. Properties+9 / −49
- Item 4. Mine Safety Disclosures+20 / −19 · 14 edited
Item 1. Business
Business — how the company describes what it does
45 edited+12 added−14 removed20 unchanged
Item 1. Business
Business — how the company describes what it does
45 edited+12 added−14 removed20 unchanged
2023 filing
2024 filing
Nevertheless, we have management processes designed to rigorously protect our inventions and trademarks. 3 AVIENT CORPORATION Seasonality Sales of our products and services are typically seasonal, as demand has historically been slower in the third and fourth calendar quarters of the year.
Nevertheless, we have management processes designed to rigorously protect our inventions and trademarks. 3 AVIENT CORPORATION Seasonality Sales of our products and services are typically seasonal, as demand has historically been slower in the third and fourth quarters of the calendar year.
We have the scientific know-how in materials science required to bridge the large, commodity base resin producers and the companies who ultimately manufacture end products utilizing formulated polymer materials. Polymers are a class of organic materials that are generally produced by converting natural gas or crude oil derivatives into monomers, such as ethylene, propylene, and styrene.
We have the scientific know-how in materials science required to bridge the large, commodity base resin producers and the companies who ultimately manufacture end products utilizing formulated polymer and composite materials. Polymers are a class of organic materials that are generally produced by converting natural gas or crude oil derivatives into monomers, such as ethylene, propylene, and styrene.
These specialized polymers offer sustainability and performance advantages compared to traditional materials, including design freedom, processability, weight reduction, chemical resistance, flame retardance and lower cost. Plastics are renowned for their durability, aesthetics, ease of handling and recyclability. Avient’s strategy and investments are aligned to enable these important benefits, now and in the future.
These specialized polymers offer sustainability and performance advantages compared to traditional materials, including design freedom, processability, weight reduction, chemical resistance, flame retardance and lower cost. Plastics are renowned for their durability, aesthetics and ease of handling. Avient’s strategy and investments are aligned to enable these important benefits, now and in the future.
A Great Place to Work® Our ongoing associate feedback is highly valued, discussed, and most importantly, acted upon, to make improvements. In addition to holding action planning sessions, new manager assimilations, and 360 reviews, we also conduct annual employee engagement surveys.
A Great Place to Work® Our ongoing employee feedback is highly valued, discussed, and most importantly, acted upon, to make improvements. In addition to holding action planning sessions, new manager assimilations, and 360 reviews, we also conduct annual employee engagement surveys.
We also focus on development for our production associates in aspects of Lean Six Sigma, safety, continuous improvement, and our ENGAGE program. Continuous development drives associates to reach their full potential and we strive to fill at least half of all open manager roles and higher with internal promotions.
We also focus on development for our production employees in aspects of Lean Six Sigma, safety, continuous improvement, and our ENGAGE program. Continuous development drives employees to reach their full potential and we strive to fill at least half of all open manager roles and higher with internal promotions.
These roles include highly-coveted rotational development programs where individuals are able to gain experience in various departments and jobs within or across functions, contributing their skills while also building diverse, well-rounded knowledge of our Company and its many stakeholders. We leverage global processes and systems to create a positive candidate experience, with opportunities for both entry level and experienced hires.
These roles include rotational development programs where individuals are able to gain experience in various departments and jobs within or across functions, contributing their skills while also building well-rounded knowledge of our Company and its many stakeholders. We leverage global processes and systems to create a positive candidate experience, with opportunities for both entry level and experienced hires.
Safety and Health The top priority at Avient is the safety and health of our associates, and our ultimate goal is to operate injury free. Progress toward this goal is measured at the business unit and regional levels, communicated globally, and linked to a number of recognition programs.
Safety and Health A top priority at Avient is the safety and health of our employees, and our ultimate goal is to operate injury free. Progress toward this goal is measured at the business unit and regional levels, communicated globally, and linked to a number of recognition programs.
The formulation science and manufacturing processes required to achieve those characteristics is the specialty role that Avient plays. 2 AVIENT CORPORATION The following are examples, by industry, where Avient solutions address specific market requirements or challenges.
The materials science and manufacturing processes required to achieve those characteristics is the specialty role that Avient plays. 2 AVIENT CORPORATION The following are examples, by industry, where Avient materials solutions address specific market requirements or challenges.
See the discussion of risks associated with raw material supply and costs in Item 1A, “Risk Factors." Patents and Trademarks We own and maintain a number of patents and trademarks in the United States and other key countries that contribute to our competitiveness in the markets we serve because they protect our inventions and product names against infringement by others.
See the discussion of risks associated with raw material supply and costs in Item 1A, “ Risk Factors ." Patents and Trademarks We own and maintain a number of patents and trademarks in the United States and other key countries that contribute to our competitiveness in the markets we serve because they protect our inventions and product names against infringement by others.
Understanding how our associates feel about their experiences at Avient and our culture is critical and helps us ensure that the right competencies and behaviors are developed across the organization.
Understanding how our employees feel about their experiences at Avient and our culture is critical and helps us ensure that the right competencies and behaviors are developed across the organization.
Our talented people leverage their diverse backgrounds and skills toward a common goal: meeting the needs of the present without compromising the ability of future generations to do the same. This spirit of inclusive collaboration can be felt throughout our Company.
Our talented people leverage their diverse backgrounds across a myriad of aspects and skills toward a common goal: meeting the needs of the present without compromising the ability of future generations to do the same. This spirit of inclusive collaboration can be felt throughout our Company.
Various additives can also be formulated with a base resin and further engineered into a structure to provide them with greater versatility and performance. Polymer formulations and structures have advantages over metals, wood, rubber, glass and other traditional materials, which have resulted in the replacement of these materials across a wide spectrum of applications.
Various additives can also be formulated with a base resin and further engineered into a composite to provide them with greater versatility and performance. Polymer formulations and composites have advantages over metals, wood, rubber, glass and other traditional materials, which have resulted in the replacement of these materials across a wide spectrum of applications.
Avient Segments We operate in two reportable segments: (1) Color, Additives and Inks and (2) Specialty Engineered Materials. Our segments are further detailed in Note 15, Segment Information , to the accompanying consolidated financial statements. Competition The manufacturing of custom and proprietary formulated thermoplastics, polymer composites, and color and additives systems is highly competitive.
Avient Segments We operate in two reportable segments: (1) Color, Additives and Inks and (2) Specialty Engineered Materials. Our segments are further detailed in Note 14, Segment Information , to the accompanying consolidated financial statements. Competition The manufacturing of custom and proprietary formulated thermoplastics, polymer composites, and color and additive solutions is highly competitive.
We believe that our role in the value chain continues to become more vital as our customers increasingly need reliable suppliers with a global reach and increasingly effective materials-based solutions to improve their products' sustainability appeal, performance, differentiation, profitability and competitive advantage.
We believe that our role in the value chain continues to become more vital as our customers increasingly need reliable suppliers with a global reach, local touch, and highly effective materials-based solutions to help improve their products' performance, appeal, differentiation, profitability and competitive advantage.
Using our formulation expertise and operational capabilities, we create an essential link between large chemical producers (our raw material suppliers) and designers, assemblers and processors of plastics (our customers).
Using formulation expertise, materials science and operational capabilities, we create an essential link between large chemical producers (our raw material suppliers) and designers, assemblers and processors of polymers (our customers).
This is completed through regular performance feedback, individual development plans, mentoring programs and nomination-based leadership development programs for key top talent. Diversity and Inclusion We recognize the immense benefits that a diverse team brings to our organization, including delivering better business outcomes.
This is completed through regular performance feedback, individual development plans, mentoring programs and nomination-based leadership development programs for key top talent. Inclusion and Impact We recognize the benefits that inclusion brings to our organization, including delivering better business outcomes.
Continual improvement and preventative risk reductions are key focus areas and, in 2023, one of our annual incentive plan metrics measured the engagement of our employees in safety activities.
Continuous improvement and preventative risk reductions are key focus areas, and in 2024, one of our annual incentive plan metrics measured the engagement of our employees in safety activities.
Last year, employees in over 40 countries, and more than 130 locations participated, providing actionable feedback to support our ongoing employee engagement efforts. We are proud to share that our associates feel we are a Great Place to Work® and, in 2023, we received our fifth certification.
Last year, employees in over 40 countries, and more than 130 locations participated, providing actionable feedback to support our ongoing employee engagement efforts. We are proud that our employees feel we are a Great Place to Work®, and in 2024, we received our sixth certification.
Our key development opportunities include nomination-based leadership programs (such as NextGen, Emerging Leaders and Elevate), foundational leadership training for all current or aspiring people managers, called Core Leadership, and Lean Six Sigma training at a variety of levels, where individuals can be certified for job-specific Lean Six Sigma programs, up through Master Black Belt certification.
Our key development opportunities include nomination-based leadership programs, foundational leadership training for all current or aspiring people managers, and Lean Six Sigma training at a variety of levels, where individuals can be certified for job-specific Lean Six Sigma programs, up through Master Black Belt certification.
Our goal is to provide customers with specialized and sustainable materials and solutions through our global footprint, broad market knowledge, technical expertise, product breadth, manufacturing operations and raw materials procurement leverage. Our end markets include consumer, packaging, defense, healthcare, industrial, transportation, building and construction, telecommunications and energy. Polymer Industry Overview Avient is a specialty formulator within the polymer industry.
Our goal is to provide customers with innovative materials solutions through our global footprint, broad market knowledge, technical expertise, product breadth, manufacturing operations and raw materials procurement leverage. Our end markets include consumer, packaging, defense, healthcare, industrial, transportation, building and construction, telecommunications and energy. Polymer Industry Overview Avient is an innovator of materials solutions within the polymer industry.
Training and Development We provide meaningful learning engagements and skill development opportunities to all full- and part-time global associates. Learning is ingrained in our culture and every Avient associate participates in training annually. We manage training and development through global programs and technology, to provide a consistent and high-quality experience for associates.
Training and Development We provide meaningful learning engagements and skill development opportunities to all global employees. Learning is ingrained in our culture and every Avient employee participates in training annually. We manage training and development through global programs and technology, to provide a consistent and high-quality experience for all.
In 2023, we had a recordable incident rate of 0.58 per 100 full-time workers per year, compared to the Plastics and Rubber Products Manufacturing industry (NAICS Code 326) average of 3.40 in 2022.
In 2024, we had our safest year ever with a recordable incident rate of 0.40 per 100 full-time workers per year, compared to the Plastics and Rubber Products Manufacturing industry (NAICS Code 326) average of 2.90 in 2023.
We believe that compliance with current governmental laws and regulations and with non-governmental content-specific standards will not have a material adverse effect on our financial position, results of operations or cash flows.
In our operations, we must comply with product-related governmental law and regulations affecting the plastics industry generally and also with content-specific law, regulations and non-governmental standards. We believe that compliance with current governmental laws and regulations and with non-governmental content-specific standards will not have a material adverse effect on our financial position, results of operations or cash flows.
In addition, we provide our associates an opportunity to support and help create more sustainable communities by giving each associate 16 hours of paid time off each year. In 2023, over 100 of our sites and 3,600 of our associates generously gave over 7,000 volunteer hours and $1.5 million in donations around the world.
In addition, we provide our employees an opportunity to support communities by giving each individual 16 hours of paid time off each year. In 2024, over 100 of our sites and 3,800 of our employees generously gave over 11,000 volunteer hours and $1.5 million in donations around the world.
We currently have 102 manufacturing sites in North America, South America, Europe, the Middle East, Asia, and Africa (EMEA). In 2023, the Company had sales from continuing operations of $3.1 billion, approximately 61% of which were to customers outside the United States.
Avient Corporation is incorporated in Ohio and headquartered in Avon Lake, Ohio. We currently have 102 manufacturing sites in North America, South America, Asia, Europe, the Middle East, and Africa (EMEA). In 2024, the Company had sales from continuing operations of $3.2 billion, approximately 60% of which were to customers outside the United States.
Refer to Note 12, Commitments and Contingencies , to the accompanying consolidated financial statements for discussion of environmental investigation and remediation matters and
Refer to Note 11, Commitments and Contingencies , to the accompanying consolidated financial statements for discussion of environmental investigation and remediation matters and Item 1A, "Risk Factors" for discussion of matters pertaining to other regulation.
The success and growth of our business depend in large part on our ability to attract, develop and retain a diverse population of talented and high-performing employees at all levels of our organization, including the individuals who comprise our global workforce as well as our executive officers and other key personnel.
Human Capital Resources The success and growth of our business depend in large part on our ability to attract, develop and retain a diverse population of talented and high-performing employees at all levels of our organization.
Raw Materials The primary raw materials used by our manufacturing operations are polyolefin and other thermoplastic resins, titanium oxide, inorganic and organic pigments, specialty additives and ethylene. In general, there is adequate supply and capacity from a variety of suppliers to serve our business.
Raw Materials The primary raw materials used by our manufacturing operations are polyolefin and other thermoplastic resins, titanium dioxide, inorganic and organic pigments, specialty additives and ethylene, all of which we believe are currently in adequate supply.
Effective June 30, 2020, the Company amended its existing Articles of Incorporation to change its name to Avient Corporation and changed its ticker symbol from “POL” to “AVNT”, effective at the start of trading on July 13, 2020. Avient Corporation is incorporated in Ohio and headquartered in Avon Lake, Ohio.
Through a series of acquisitions, divestitures, operational improvements and cultural shift, the Company has transformed to become an innovator of materials solutions. Effective June 30, 2020, the Company amended its existing Articles of Incorporation to change its name to Avient Corporation and changed its ticker symbol from “POL” to “AVNT”, effective at the start of trading on July 13, 2020.
The 2022 average injury incidence rate for our NAICS Code (326 Plastics and Rubber Products Manufacturing) was 3.40. We hold the American Chemistry Council's certification as a Responsible Care Management System ® (RCMS) company. Certification was granted based on Avient's conformance to the RCMS's comprehensive environmental health, safety and security requirements.
We hold the American Chemistry Council's certification as a Responsible Care Management System ® (RCMS) company. Certification was granted based on Avient's conformance to the RCMS's comprehensive environmental health, safety and security requirements. The RCMS certification affirms the importance Avient places on having strong environmental, health, safety and security performance.
In general, our overall philosophy on compensation encompasses the following principles: • provide all levels of associates with a compensation package that aligns Avient’s and the associates’ interests through the use of base and incentive or bonus programs; • maintain a competitive pay program that serves to attract, retain, motivate and reward associates; and • award individual pay commensurate with experience, level of responsibility, and marketability.
In general, our overall philosophy on compensation encompasses the following principles: • provide all levels of employees with a compensation package that aligns Avient’s and the employees’ interests through the use of base and incentive or bonus programs; • maintain a competitive pay program that serves to attract, retain, motivate and reward employees; and • award individual pay commensurate with experience, level of responsibility, and marketability. 5 AVIENT CORPORATION Employee Benefits: Awards and Recognition Programs We celebrate, reward and share our employees’ great work through our recognition programs, including those that all employees can earn for their extra effort and impact, as well as those that are specific to a position or role in the Company, such as excellence in technology, sales, and manufacturing.
We actively seek collaborative and innovative change-makers who are passionate about our values through numerous channels, including employee referrals, job fairs, talent networks, industry associations, and directly from universities. Our roles provide opportunities for personal and professional growth, while working in an organization focused on solving the most complex challenges for our customers and suppliers, and driving sustainability.
We actively seek collaborative and innovative change-makers who are passionate about our strategy and values through numerous channels, including employee referrals, job fairs, talent networks, industry associations, and directly from universities.
The Avient Ethics Hotline serves as a mechanism for associates to anonymously report any perceived concerns regarding these topics. Compensation and Benefits Programs We strive to remain competitive in the global marketplace and provide foundational rewards to attract and retain top talent.
Compensation and Benefits Programs We strive to remain competitive in the global marketplace and provide foundational rewards to attract and retain top talent.
As of December 31, 2023, Avient employed approximately 9,300 people, 34% of which were located in the U.S. and Canada, 34% were located in EMEA, 25% were located in Asia, and 7% were located in Latin America.
These strategies, objectives and measures are advanced through a number of programs, policies and initiatives, as described below. As of December 31, 2024, Avient employed approximately 9,200 people, 34% of which were located in the U.S. and Canada, 33% were located in EMEA, 26% were located in Asia, and 7% were located in Latin America.
As a key aspect of our talent pipeline, we partner with leading universities around the world to hire associates into full-time, co-op and internship opportunities.
Our roles provide opportunities for personal and professional growth, while working in our organization where our purpose is to innovate materials solutions that help our customers succeed, while enabling a sustainable world. As a key aspect of our talent pipeline, we partner with leading universities around the world to hire employees into full-time, co-op and internship opportunities.
We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants and fluoropolymer and silicone colorants. When used in this Annual Report on Form 10-K, the terms “we,” “us,” “our," "Avient" and the “Company” mean Avient Corporation and its consolidated subsidiaries.
When used in this Annual Report on Form 10-K, the terms “we,” “us,” “our," "Avient" and the “Company” mean Avient Corporation and its consolidated subsidiaries. Avient was formed as PolyOne Corporation on August 31, 2000 from the consolidation of The Geon Company (Geon) and M.A. Hanna Company (Hanna).
We believe that we are in material compliance with all applicable requirements. 6 AVIENT CORPORATION We are strongly committed to safety as evidenced by our low injury incidence rate of 0.58 per 100 full-time workers per year in 2023 and 0.51 in 2022.
We are strongly committed to safety as evidenced by our low injury incidence rate of 0.40 per 100 full-time workers per year in 2024 and 0.58 in 2023. The 2023 average injury incidence rate for our NAICS Code (326 Plastics and Rubber Products Manufacturing) was 2.90.
We have developed key recruitment and retention strategies, objectives and measures that guide our human capital management approach as part of the overall management of our business. These strategies, objectives and measures are advanced through a number of programs, policies and initiatives, as described below.
We are committed to building additional capabilities within our organization to meet the changing needs of our customers and the dynamic macro environment in which we operate. We have developed key recruitment and retention strategies, objectives and measures that guide our human capital management approach as part of the overall management of our business.
ITEM 1. BUSINESS Business Overview We are a premier formulator of specialized and sustainable materials solutions that transform customer challenges into opportunities, bringing new products to life for a better world. Our products include specialty engineered materials, performance fibers, advanced composites and color and additive systems.
ITEM 1. BUSINESS Business Overview We are an innovator of materials solutions to help our customers succeed, while enabling a sustainable world. Our products include specialty engineered materials, performance fibers, advanced composites and color and additive solutions. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants and silicone colorants.
It drives the innovation that earns us leadership positions in the markets we serve and underpins the high level of respect we show each other every day. Our commitment to diversity begins at the highest levels of our organization, as evidenced by the fact that 50% of our Board of Directors are female or racially diverse.
It drives the innovation that earns us leadership positions in the markets we serve and underpins the high level of respect we show each other every day. The vision that guides our collective efforts is consistent and unwavering: to be the Company of choice for all.
We require equality of opportunity for all qualified individuals in accordance with applicable laws. 5 AVIENT CORPORATION Decisions on hiring, promotion, development, compensation or advancement are based solely on a person’s qualifications, abilities, experience and performance, except where local law requires us to take actions to increase employment opportunities for a specific group.
Decisions on hiring, promotion, development, compensation or advancement are based solely on a person’s qualifications, abilities, experience and performance, except where local law requires us take specific action. The Avient Ethics Hotline serves as a mechanism for employees to anonymously report any perceived concerns regarding these topics.
This allows us to rapidly translate new technologies into new products, helping us advance a more circular economy with reduced carbon footprint. Our investment in product research and development was $90.3 million in 2023, $84.9 million in 2022, and $83.2 million in 2021. Methods of Distribution We sell products primarily through direct sales personnel, distributors, and commissioned sales agents.
Our investment in product research and development was $98.7 million in 2024, $90.3 million in 2023, and $84.9 million in 2022. Methods of Distribution We sell products primarily through direct sales personnel, distributors, and commissioned sales agents. We primarily use truck carriers to transport our products to customers, although some customers pick up product at our manufacturing facilities or warehouses.
In wire and cable, thermoplastics and composites serve to protect by providing electrical insulation, flame resistance, durability, water resistance, water swelling and color coding to engineered fibers, yarn products, wire coatings and connectors.
In wire and cable, thermoplastics and composites enhance performance and extend product life by providing electrical insulation, flame resistance, water resistance and strain resistance for highly engineered electrical and telecommunications wires, cables and connectors.
Research and Development We have substantial technology and development capabilities, powered by approximately 1,100 associates serving in technology capacities, approximately 140 of whom have PhD level educations. Our efforts are largely devoted to developing new product formulations to address evolving market and sustainability needs.
Significant Customers No customer accounted for more than 3% of our consolidated revenues in 2024. Research and Development One of our strategic drivers is to "Amplify Innovation," and we have substantial technology and development capabilities, powered by approximately 1,100 employees serving in technical capacities, approximately 120 of whom have PhD level educations.
We leverage Employee Resource Groups (ERGs) to help educate and inspire our global workforce and fortify strong business practices.
We leverage Employee Resource Groups to help educate and inspire our global workforce and fortify strong business practices. Other initiatives, including Mentoring at Avient and campus partnerships, are vital for progress in our inclusion journey. We require equality of opportunity for all qualified individuals in accordance with applicable laws.
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Avient was formed as PolyOne Corporation on August 31, 2000 from the consolidation of The Geon Company (Geon) and M.A. Hanna Company (Hanna). Through a series of acquisitions and divestitures, the Company has transformed into a premier specialty formulator.
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In the packaging industry, colorants and additives are used to lightweight, enhance consumer appeal, increase design freedom, improve recyclability, enable recycled content to be incorporated, and preserve and protect the packaging's contents.
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In the packaging industry, plastics are required that help keep food fresh and free of contamination while providing a variety of options for product display, and offering advantages in terms of weight and user-friendliness.
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In the defense industry, ultra-high molecular weight (UHMWPE) fiber is relied upon and incorporated into tactical vests, hard armor plates, shields, bomb suits, helmets, and military vehicles (air, sea and ground).
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We believe that our four-pillar strategy of Specialization, Globalization, Commercial Excellence and Operational Excellence, along with our focus on putting our customers and their needs first, enables us to successfully compete in the market.
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Our strategic approach to differentiate, innovate and grow within this competitive environment is to intersect high-growth markets and secular trends with our technologies to create product platforms of scale.
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In 2022, we experienced certain supply disruptions, shortages, volume allocations and logistical delays for some of these materials. In 2023, most global supply chains relevant to our business returned to pre-pandemic operational levels, and none of the few disruptions that occurred had a material impact on our business.
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In addition, our defense business is, in part, associated with tenders and project-based work, which can lead to inconsistent order patterns on a quarter over quarter basis.
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Significant Customers No customer accounted for more than 3% of our consolidated revenues in 2023 and we do not believe we would suffer a material adverse effect to our consolidated financial statements if we were to lose any single customer.
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Our efforts are largely devoted to developing new materials solutions to address evolving market and sustainability needs.
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We primarily use truck carriers to transport our products to customers, although some customers pick up product at our manufacturing facilities or warehouses. Human Capital Resources “People” is the first of Avient’s four cornerstones of sustainability (People, Products, Planet and Performance), which, together with our core values and our four-pillar strategy, form the framework of our company culture.
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Environmental, Health and Safety and Other Regulation We are also subject to extensive and varied laws and regulations in the jurisdictions in which we operate, including those relating to anti‑corruption and trade, anti-money laundering, import and export compliance, antitrust, data security and privacy, employment, public health and safety, intellectual property, transportation, zoning, and fire codes.
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From a management perspective, 60% of our CEO's direct reports are female, racially or ethnically diverse, which we believe sets the right tone and expectation for diversity and inclusion within the Company. The vision that guides our collective efforts is consistent and unwavering: to be the Company of choice for all.
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Our policies mandate compliance with all applicable laws and regulations, and we operate our business in accordance with standards and procedures designed to comply with these laws and regulations. We believe that we are in compliance with such laws and regulations in all material respects.
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Our ERGs include: PRIDE at Avient (which is working to maintain a safe and accepting environment that enables LGBTQ+ associates to perform to their fullest potential and contribute to the success of our Company), HYPE (which stands for Harnessing Young Potential Energy and is building a collaborative network of Avient’s young professionals), LEAD by Women (which promotes inclusion by increasing access to the tools and resources necessary to build leadership skills and accelerate careers), EMBRACE (which focuses on understanding and valuing the many diverse cultures and backgrounds of our associates) and SERVE (which stands for Sustaining Engagement for Returning Veteran Employees and is focusing on our U.S-based veteran community).
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International Operations Our international operations are subject to a variety of risks, including currency fluctuations and devaluations, exchange controls, import/export restrictions, currency restrictions and changes in local economic conditions. While the impact of these risks is difficult to predict, any one or more of them could adversely affect our future operations.
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In 2023, we launched our newest ERG, RAISE, which is focused on supporting associates who are parents and caregivers to connect, learn and empower one another to balance work and home responsibilities. Other initiatives, including Mentoring at Avient and campus partnerships, are vital for progress in our inclusion journey.
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For more information about the noted risks, see Item 1A, "Risk Factors." For more information about our international operations, see Note 14, Segment Information , to the accompanying consolidated financial statements. 6 AVIENT CORPORATION Where You Can Find Additional Information Our principal executive offices are located at 33587 Walker Road, Avon Lake, Ohio 44012, and our telephone number is +1 (440) 930-1000.
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Associate Benefits: Awards and Recognition Programs We celebrate, reward and share our associates’ great work through our recognition programs, including those that all associates can earn for their extra effort and impact, as well as those that are specific to a position or role in the Company, such as excellence in technology, sales, and manufacturing.
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We are subject to the information reporting requirements of the Securities Exchange Act of 1934 (the Exchange Act), and, in accordance with these requirements, we file annual, quarterly and other reports, proxy statements and other information with the SEC relating to our business, financial results and other matters. Our internet address is www.avient.com .
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Environmental, Health and Safety and Other Regulation We are subject to various environmental laws and regulations that apply to the production, use and sale of chemicals, emissions into the air, discharges into waterways and other releases of materials into the environment, and the generation, handling, storage, transportation, treatment and disposal of waste materials.
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Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available, free of charge, on our website (select Investors and then SEC Filings ) or upon written request, as soon as reasonably practicable after we electronically file or furnish them to the SEC.
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We strive for the safe and lawful operation of our facilities in the manufacture and distribution of products, and we believe we are in material compliance with all applicable laws and regulations.
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The contents of our website are not part of this Annual Report on Form 10-K, and the reference to our website does not constitute incorporation by reference into this Form 10-K of the information contained at that site. 7 AVIENT CORPORATION
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We maintain a disciplined environmental and occupational safety and health compliance program and conduct periodic internal and external regulatory audits at our facilities to identify and prevent potential environmental exposures, including compliance matters and operational risk reduction opportunities. This effort can result in process or operational modifications, the installation of pollution control devices or cleaning up grounds or facilities.
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The RCMS certification affirms the importance Avient places on having world-class environmental, health, safety and security performance. In our operations, we must comply with product-related governmental law and regulations affecting the plastics industry generally and also with content-specific law, regulations and non-governmental standards.
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
4 edited+51 added−6 removed0 unchanged
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
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2023 filing
2024 filing
RISK FACTORS The following are certain risk factors that could affect our business, results of operations, financial position or cash flows. Although the risks are organized by headings and each risk is described separately, many of the risks are interrelated.
ITEM 1A. RISK FACTORS The following are certain risk factors that could affect our business, results of operations, financial position or cash flows. Although the risks are organized by headings and each risk is described separately, many of the risks are interrelated.
The following discussion is not an all-inclusive listing of risks, although we believe these are the more material risks that we face. If any of the following occur, our business, results of operations, financial position or cash flows could be adversely affected. Global Operating Risks Our operations could be adversely affected by various risks inherent in conducting operations worldwide.
The following discussion is not an all-inclusive listing of risks, although we believe these are the more material risks that we face. If any of the following occur, our business, results of operations, financial position or cash flows could be adversely affected.
These risk factors should be considered along with the forward-looking statements contained in this Annual Report on Form 10-K because these factors could cause our actual results or financial condition to differ materially from those projected in forward-looking statements. You should not interpret the disclosure of any risk factor to imply that the risk has not already materialized.
These risk factors should be considered along with the forward-looking statements contained in this Annual Report on Form 10-K because these factors could cause our actual results or financial condition to differ materially from those projected in forward-looking statements.
We conduct a substantial portion of our business outside the U.S., with approximately 61% of our sales in foreign countries. We currently have many facilities located outside the U.S., as detailed in
Global Operating Risks Our operations have in the past been and could in the future be adversely affected by various risks inherent in conducting operations worldwide. We conduct a substantial portion of our business outside the U.S., with approximately 60% of our sales outside the U.S.
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Item 1A. "Risk Factors" for discussion of matters pertaining to other regulation. International Operations Our international operations are subject to a variety of risks, including currency fluctuations and devaluations, exchange controls, currency restrictions and changes in local economic conditions.
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We also have many facilities located outside the U.S., as detailed in Item 2, “Properties.” Accordingly, our business is subject to risks related to the differing legal, political, social and regulatory requirements, and economic conditions of many jurisdictions.
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While the impact of these risks is difficult to predict, any one or more of them could adversely affect our future operations. For more information about the noted risks, see Item 1A. "Risk Factors." For more information about our international operations, see Note 15, Segment Information , to the accompanying consolidated financial statements.
Added
Risks inherent in international operations include, but are not limited to, the following: • changes in local government regulations and policies including, but not limited to, duty or tariff restrictions, foreign currency exchange controls or monetary policy, repatriation of earnings, expropriation of property, investment limitations and tax policies; • political and economic instability and disruptions, including labor unrest, withdrawal or renegotiation of trade agreements, natural disasters, major public health issues, pandemics, civil strife, acts of war, insurrection and terrorism; • supply chain disruptions; • compliance with international trade laws and regulations, including tariffs, export control and economic sanctions, and other trade barriers; • legislation that regulates the use of chemicals; • disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations, including the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act; • difficulties in staffing and managing multi-national operations; • limitations on our ability to enforce legal rights and remedies; • reduced protection of intellectual property rights; • other risks arising out of foreign sovereignty over the areas where our operations are conducted; and • increasingly complex laws and regulations concerning privacy and data security, including, but not limited to, the European Union's General Data Protection Regulation.
Removed
Where You Can Find Additional Information Our principal executive offices are located at 33587 Walker Road, Avon Lake, Ohio 44012, and our telephone number is +1 (440) 930-1000.
Added
We could be adversely affected by violations of the FCPA, UK Bribery Act and similar worldwide anti-bribery laws, as well as export controls and economic sanction laws. As a global company, we operate in many parts of the world that have experienced governmental corruption.
Removed
We are subject to the information reporting requirements of the Securities Exchange Act of 1934 (the Exchange Act), and, in accordance with these requirements, we file annual, quarterly and other reports, proxy statements and other information with the SEC relating to our business, financial results and other matters. Our internet address is www.avient.com .
Added
While we have no basis to believe such actions are occurring, if we are found to be liable for FCPA, UK Bribery Act, export control or sanction violations, we could suffer from criminal or civil penalties or other sanctions, including loss of export privileges or authorization needed to conduct aspects of our international business, which could have a material adverse effect on our business.
Removed
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available, free of charge, on our website (select Investors and then SEC Filings ) or upon written request, as soon as reasonably practicable after we electronically file or furnish them to the SEC.
Added
We have robust policies that require compliance with all laws and regulations and we strictly enforce those policies. It is always possible an employee's or agent's unlawful actions may avoid detection.
Removed
The contents of our website are not part of this Annual Report on Form 10-K, and the reference to our website does not constitute incorporation by reference into this Form 10-K of the information contained at that site. 7 AVIENT CORPORATION ITEM 1A.
Added
Any of these risks could have an adverse effect on our international operations by reducing demand for our products. 8 AVIENT CORPORATION Business Risks Demand for and supply of our products and services have in the past been, and may in the future be, adversely affected by several factors, some of which we cannot predict or control.
Added
Several factors have in the past and may in the future affect the demand for and supply of our products and services, including: • economic downturns, inflation or other volatility in the significant end markets that we serve; • product obsolescence or technological changes that unfavorably alter the value/cost proposition of our products and services; • competition from existing and unforeseen polymer and non-polymer based products; • declines in general economic conditions or reductions in industrial production growth rates, both domestically and globally, which could impact customer demand and our customers’ ability to pay amounts owed to us; • changes in environmental regulations that limit our ability to sell our products and services in specific markets; • changes in demand for and laws and regulations regarding plastic materials; and • inability to obtain raw materials or supply products to customers due to factors such as supplier work stoppages or insolvency, supply shortages, plant outages or regulatory changes that may limit or prohibit overland transportation of certain hazardous materials and exogenous factors, like severe weather.
Added
If any of these events occur in the future, the demand for and supply of our products and services could suffer and potentially lead to asset impairment or otherwise adversely affect our results. Our manufacturing operations are subject to hazards and other risks associated with specialty formulation and the related storage and transportation of raw materials, products and waste.
Added
The occurrence of an operating problem at our facilities may have a material adverse effect on the productivity and profitability of a particular manufacturing facility or on our operations as a whole, during and after the period of these operating difficulties.
Added
Operating problems may cause personal injury and/or loss of life, customer attrition and severe damage to or destruction of property and equipment and environmental damage. We are subject to present claims and potential future claims with respect to workplace exposure, workers’ compensation and other matters.
Added
Our property and casualty insurance, which we believe are of the types and in the amounts that are customary for the industry, may not fully insure us against all potential hazards that are incident to our business or otherwise could occur. Environmental, health and safety laws and regulations impact our operations and financial statements.
Added
Our operations on, and ownership of, real property are subject to environmental, health and safety laws and regulations at the national, state and local governmental levels (including, but not limited to, the Restriction of Hazardous Substances (RoHS) and the Consumer Product Safety Improvement Act of 2008).
Added
The nature of our business exposes us to compliance costs and risks of liability under these laws and regulations due to the production, storage, transportation, recycling or disposal and/or sale of materials that can cause contamination and other harm to the environment or personal injury if they are improperly handled and released.
Added
Environmental compliance requirements imposed on us and our vendors may significantly increase the costs of these activities involving raw materials, energy, finished products and wastes. We may incur substantial costs, including fines, criminal or civil sanctions, damages, and remediation costs, or experience interruptions in our operations for violations of these laws.
Added
Electricity, fuel, logistics and raw material availability and costs have in the past and could in the future cause volatility in our results. The cost of our electricity, fuel, logistics and raw materials may not correlate with changes in the prices we receive for our products, either in the direction of the price change or in absolute magnitude.
Added
Electricity and raw materials costs represent a substantial part of our manufacturing costs. Most of the raw materials we use are commodities and the price of each can fluctuate widely for a variety of reasons, including changes in availability because of major capacity additions or reductions or significant facility operating problems.
Added
Other external factors beyond our control, including, but not limited to, trade barriers due to geopolitical tensions, can also cause fluctuations in raw materials prices, which could negatively impact demand for our products and cause volatility in our results. 9 AVIENT CORPORATION Increased competition can negatively impact sales, earnings and cash flow performance.
Added
We encounter competition in price, payment terms, delivery, service, performance, product innovation, product recognition and quality, depending on the product involved. Avient's operating results depend, in part, on continued successful research, development, and marketing of new products, and some of such efforts may not come to fruition or may be delayed.
Added
We expect that our competitors will continue to develop and introduce new and enhanced products, which could cause a decline in the market acceptance of our products. In addition, our competitors could cause a reduction in the selling prices of some of our products as a result of intensified price competition.
Added
Competitive pressures could also result in the loss of customers. Cybersecurity breaches, global information systems security threats and computer crime pose a risk to our systems, networks and products, which could harm our business.
Added
We depend on integrated information systems to conduct our business, including communicating with employees and customers, ordering and managing materials from suppliers, shipping products to customers, and analyzing and reporting results of operations.
Added
In addition, some of our systems, tools and resources use, integrate, or will integrate some form of artificial intelligence, which has the potential to result in bias, miscalculations, data errors, intellectual property infringement and other unintended consequences. Further, we store sensitive data, including proprietary business information, intellectual property and confidential employee or other personal data, on our servers and databases.
Added
Cybersecurity breaches, global information systems security threats and more sophisticated and targeted computer crime pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our data and communications.
Added
We continue to update our infrastructure, security tools, employee training and processes to protect against security incidents, including both external and internal threats, and to prevent their recurrence; however, our systems, networks and products may nevertheless be vulnerable to advanced persistent threats or other types of system failures.
Added
Depending on their nature and scope, such threats and system failures could lead to the compromising of confidential information and communications, improper use of our systems and networks, manipulation and destruction of data, defective products, production downtimes and operational disruptions, which in turn could cause customers to cancel orders or otherwise adversely affect our reputation, competitiveness and results of operations.
Added
We have experienced targeted and non-targeted cybersecurity attacks in the past and we could experience similar incidents in the future. To date, no cybersecurity incident or attack has had a material impact on our business or consolidated financial statements. We are subject to risks associated with climate change and potential climate change legislation, regulation and international agreements.
Added
Carbon emissions have become the subject of an increasing amount of state and local, regional, national, and international attention. Growing concerns about climate change have resulted and may continue to result in the imposition of additional regulations or restrictions to which we may become subject.
Added
These regulatory developments related to climate change and climate disclosure and diligence, including the Corporate Sustainability Reporting Directive, could increase our operating and compliance costs, thereby impacting our business and consolidated financial statements. From time to time, we establish strategies and expectations related to climate change and other environmental matters.
Added
Our ability to achieve any such strategies or expectations is subject to numerous factors and conditions, many of which are outside of our control.
Added
Examples of such factors include, but are not limited to, evolving legal, regulatory, and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.
Added
Failures or delays (whether actual or perceived) in achieving our strategies or expectations related to climate change and other environmental matters could adversely affect our business, operations, and reputation, and increase risk of litigation. 10 AVIENT CORPORATION Capital and Credit Risks Fluctuation of foreign currency exchange rates may adversely impact our financial results.
Added
We conduct business in various regions throughout the world and are therefore exposed to fluctuations in foreign currency exchange rates in relation to the U.S. dollar.
Added
Any significant change in the value of the currencies of the countries in which we do business against the U.S. dollar, whether precipitated by governmental monetary policy or otherwise, could affect our ability to sell products competitively and control our cost structure, which could have a material adverse effect on our business, financial condition and results of operations.
Added
Further, because our Consolidated Financial Statements are presented in U.S. dollars, increases or decreases in the value of the U.S. dollar relative to other currencies in which we conduct business have in the past and could in the future adversely impact our financial results.
Added
For additional detail related to this risk, see Item 7A, "Quantitative and Qualitative Disclosures About Market Risk." Disruptions in the global credit, financial and/or currency markets could limit our access to credit or otherwise harm our financial results, which could have a material adverse impact on our business.
Added
Global credit and financial markets experience volatility, including volatility in security prices, liquidity and credit availability, declining valuations of certain investments and significant changes in the capital and organizational structures of certain financial institutions. Market conditions may limit our ability to access the capital necessary to grow and maintain our business.
Added
Accordingly, we may be forced to delay raising capital, issue debt with shorter tenors than we prefer or pay unattractive interest rates, which could increase our interest expense, decrease our profitability and significantly reduce our financial flexibility.
Added
The agreements governing our debt, including our revolving credit facility, term loan and other debt instruments, contain various covenants that limit our ability to take certain actions and in certain circumstances require us to meet financial maintenance tests, failure to comply with which could have a material adverse effect on us.
Added
The agreements governing our senior secured revolving credit facility and our senior secured term loan, and the indentures and credit agreements governing our other debt, contain a number of customary restrictive covenants that, among other things, limit our ability to: sell or otherwise transfer assets, including in a spin-off, incur additional debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct.
Added
In addition, depending on our level of borrowing, our revolving credit facility requires us to comply under certain circumstances with specific financial tests, under which we are required to achieve certain or specific financial and operating results. Our ability to comply with these provisions may be affected by events beyond our control.
Added
A breach of any of these covenants would result in a default under such agreements and instruments, which in certain circumstances could be a default under all of these agreements and instruments. In the event of any default, our lenders could elect to declare all amounts borrowed under the agreements, together with accrued interest thereon, to be due and payable.
Added
In such event, we cannot assure that we would have sufficient assets to pay debt then outstanding under the agreements governing our debt.
Added
Furthermore, certain of these agreements condition our ability to obtain additional borrowing capacity, engage in certain transactions or take certain other actions, on our achievement of certain or specific financial and operating results, although our failure to achieve such results would not result in a default under such agreements.
Added
Any future refinancing of our senior secured revolving credit facility or other debt may contain similar restrictive covenants. Our ability to service long-term indebtedness requires cash.
Added
Our ability to pay interest on our debt and to satisfy our other debt obligations depends in part upon our future financial and operating performance and that of our subsidiaries, and upon our ability to renew or refinance borrowings.
Added
Prevailing economic conditions and financial, business, competitive, legislative, regulatory and other factors, many of which are beyond our control, affect our ability to make these payments.
Added
While we believe that cash flow from our current level of operations, available cash and available borrowings under our revolving credit facility provide adequate sources of liquidity, a significant drop in operating cash flow resulting from economic conditions, competition or other uncertainties beyond our control could create the need for alternative sources of liquidity.
Added
If we are unable to generate sufficient cash flow to meet our debt service obligations, we will have to pursue one or more alternatives, such as reducing or delaying capital or other expenditures, refinancing debt, selling assets, or raising equity capital. 11 AVIENT CORPORATION We have a significant amount of goodwill, and any future goodwill impairment charges could adversely impact our results of operations.
Added
As of December 31, 2024, we had goodwill of $1,659.7 million.
Added
The future occurrence of a potential indicator of impairment, such as a significant adverse change in business climate, an adverse action or assessment by a regulator, unanticipated competition, a material negative change in relationships with customers, strategic decisions made in response to economic or competitive conditions could result in goodwill impairment charges, which could adversely impact our results of operations.
Added
For additional information on the results of our annual impairment testing, see Note 3, Goodwill and Intangible Assets , to the accompanying consolidated financial statements and “Critical Accounting Policies and Estimates” included in Item 7, " Management’s Discussion and Analysis of Financial Condition and Results of Operations .”
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
7 edited+2 added−10 removed6 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
7 edited+2 added−10 removed6 unchanged
2023 filing
2024 filing
Our CISO and cybersecurity teams hold relevant certifications, including, but not limited to, Certified Information Systems Security Professional, Security+ Certification, Factor Analysis for Information Risk Analyst, Certified Information Systems Auditor, Security Systems Certified Practitioner or Certified Federal Information Security Management Act Compliance Practitioner.
Our CISO and cybersecurity teams hold relevant certifications, including, but not limited to, Security+ Certification, Factor Analysis for Information Risk Analyst, Certified Information Systems Auditor, Security Systems Certified Practitioner or Certified Federal Information Security Management Act Compliance Practitioner.
Our CISO is informed about and monitors prevention, detection, mitigation, and remediation efforts through regular communication and reporting from professionals in the information security team, and through the use of technological tools and software and results from third-party audits. The CISO has a clear escalation path to senior management for cyber-related events.
Our CISO is informed about and monitors prevention, detection, mitigation, and remediation efforts through regular communication and reporting from professionals on the information security team, and through the use of technological tools and software and results from third-party audits. The CISO has a clear escalation path to senior management for cyber-related events.
We conduct regular reviews and tests of our cybersecurity program and also leverage audits by our internal audit team, penetration and vulnerability testing and other exercises to evaluate the effectiveness of our cybersecurity program and improve our security measures and planning. Cybersecurity education is a priority for our associates and business partners.
We conduct regular reviews and tests of our cybersecurity program and also leverage audits by our internal audit team, penetration and vulnerability testing and other exercises to evaluate the effectiveness of our cybersecurity program and improve our security measures and planning. Cybersecurity education is a priority for our employees and business partners.
The CDIRT's mission is to prevent a material loss of profits, public confidence, or information assets by providing an immediate, effective, and skillful response to any unexpected event in which there is an unauthorized release or access of sensitive information. 12 AVIENT CORPORATION ITEM 2.
The CDIRT's mission is to prevent a material loss of profits, public confidence, or information assets by providing an immediate, effective, and skillful response to any unexpected event in which there is an unauthorized release or access of sensitive information.
Associates complete cybersecurity training to help identify and respond to potential cybersecurity risks and reinforce safe behaviors.
Employees complete cybersecurity training to help identify and respond to potential cybersecurity risks and reinforce safe behaviors.
The Audit Committee of the Board has been delegated specific risk oversight responsibilities related to cybersecurity and data protection. The Audit Committee receives regular updates from the CIO or CISO regarding the Company's cybersecurity defense and detection capabilities, incident response plans and associate training activities.
The Audit Committee of the Board has been delegated specific risk oversight responsibilities related to cybersecurity and data protection.
Further, Avient has a Cyber and Data Incident Response Team (CDIRT), which is a cross-functional group established to provide a quick, effective and orderly response to cyber and data related events.
The Audit Committee receives regular updates from the CIO or CISO regarding the Company's material risks from cybersecurity threats, cybersecurity defense and detection capabilities, incident response plans and employee training activities. 12 AVIENT CORPORATION Further, Avient has a Cyber and Data Incident Response Team (CDIRT), which is a cross-functional group established to provide a quick, effective and orderly response to cyber and data related events.
Removed
Additionally, we have established the Avient Security and Privacy Council (ASPC), which is composed of the CISO, Chief Financial Officer, General Counsel, VP of Internal Audit, among other Avient leaders, and oversees the security-related governance, risk mitigation and regulatory compliance requirements of the Company globally.
Added
We have experienced targeted and non-targeted cybersecurity attacks and incidents in the past and we could in the future experience similar attacks.
Removed
PROPERTIES Headquartered in Avon Lake, Ohio, we operate globally with principal locations consisting of 102 manufacturing sites in North America, South America, Europe, the Middle East, Asia, and Africa. We own the majority of our manufacturing sites. We believe that the quality and production capacity of our facilities is sufficient to maintain our competitive position for the foreseeable future.
Added
To date, no cybersecurity incident or attack, or any risk from cybersecurity threats, has materially affected or has been determined to be reasonably likely to materially affect the Company or our business strategy, results of operations, or financial condition.
Removed
The following table identifies the principal facilities of our segments: Specialty Engineered Materials Color, Additives and Inks 1. Birmingham, Alabama 1. Glendale, Arizona 30. Guangzhou, China 60. Konstantynow, Poland 2. Mesa, Arizona 2. Phoenix, Arizona 31. Pudong, China 61. Kutno, Poland 3. Englewood, Colorado 3. Bethel, Connecticut 32. & 33. Shanghai, China (c) 62. Jeddah, Saudi Arabia 4.
Removed
Montrose, Colorado 4. Dalton, Georgia 34. Suzhou, China 63. Riyadh, Saudi Arabia 5. North Haven, Connecticut 5. Kennesaw, Georgia 35. Tianjin, China 64. Yanbu, Saudi Arabia 6. McHenry, Illinois 6. West Chicago, Illinois 36. Cota, Colombia 65. Jurong, Singapore 7. Winona, Minnesota 7. La Porte, Indiana 37. Aland, Finland 66. Randburg, South Africa 8. Greenville, North Carolina 8.
Removed
Lewiston, Maine 38. Cergy, France 67. Alicante, Spain 9. Hickory, North Carolina 9. Holden, Massachusetts 39. Tossiat, France 68. Barcelona, Spain 10. Avon Lake, Ohio 10. Albion, Michigan 40. Ahrensburg, Germany 69. Pamplona, Spain 11. Hatfield, Pennsylvania 11. Minneapolis, Minnesota 41. Lahnstein, Germany 70. Sant Andreu, Spain 12. Changzhou, China 12. St. Louis, Missouri 42. Guatemala City, Guatemala 71.
Removed
Malmoe, Sweden 13. Laiwu, China 13. Mooresville, North Carolina 43. Gyor, Hungary 72. Taoyuan, Taiwan 14. Shenzhen, China 14. Berea, Ohio 44. Kalol, India 73. Bangkok, Thailand 15. Suzhou, China 15. Massillon, Ohio 45. Pune, India (d) 74. Phan Thong, Thailand 16. Gaggenau, Germany 16. North Baltimore, Ohio 46. Rania, India 75. Gazientep, Turkey 17. Melle, Germany 17.
Removed
Norwalk, Ohio 47. Vashere, India 76. Gebze, Turkey 18. Drachten, Netherlands 18. Lehigh Valley, Pennsylvania 48. Tangerang, Indonesia 77. Barnsley, United Kingdom 19. Geleen, Netherlands 19. Mountain Top, Pennsylvania 49. Naas, Ireland 78. Knowsley, United Kingdom 20. Heerlen, Netherlands 20. Vonore, Tennessee 50. Lomagna, Italy 79. Thuan An, Vietnam 21. Barbastro, Spain 21. Winchester, Virginia 51.
Removed
Merate, Italy Suwanee, Georgia (b) 22. Istanbul, Turkey 22. Lomas de Zamora, Argentina 52. Pogliano, Italy 23. Leek, United Kingdom 23. Assesse, Belgium 53. Butterworth, Malaysia Maryland Heights, Missouri (b) 24. Louvain-La-Nueve, Belgium 54. Santa Clara, Mexico Shanghai, China (b) 25. Itupeva, Brazil 55. Toluca, Mexico Stanley, North Carolina (b) 26. Suzano, Brazil 56.
Removed
Auckland, New Zealand Singapore, Singapore (b) 27. Toronto, Canada 57. Karachi, Pakistan Pune, India (a), (d) 28. Maipu, Chile 58. Lahore, Pakistan Pamplona, Spain (a) 29. Chuzhou, China 59. Lima, Peru (a) Facility is not included in manufacturing plants total as it is also included as part of another segment.
Removed
(b) Facility is not included in manufacturing plants total as it is a design center/lab. (c) There are two manufacturing plants located in Shanghai, China. (d) Location also includes a design center/lab.
Item 2. Properties
Properties — owned and leased real estate
0 edited+9 added−49 removed0 unchanged
Item 2. Properties
Properties — owned and leased real estate
0 edited+9 added−49 removed0 unchanged
2023 filing
2024 filing
Removed
Item 2. “Properties.” Accordingly, our business is subject to risks related to the differing legal, political, social and regulatory requirements, and economic conditions of many jurisdictions.
Added
ITEM 2. PROPERTIES Headquartered in Avon Lake, Ohio, we operate globally with principal locations consisting of 102 manufacturing sites in North America, South America, Asia, Europe, the Middle East, and Africa. We own the majority of our manufacturing sites.
Removed
Risks inherent in international operations include, but are not limited to, the following: • changes in local government regulations and policies including, but not limited to, duty or tariff restrictions, foreign currency exchange controls or monetary policy, repatriation of earnings, expropriation of property, investment limitations and tax policies; • political and economic instability and disruptions, including labor unrest, withdrawal or renegotiation of trade agreements, natural disasters, major public health issues, pandemics, civil strife, acts of war, insurrection and terrorism; • supply chain disruptions; • legislation that regulates the use of chemicals; • disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations, including the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act; • compliance with international trade laws and regulations, including export control and economic sanctions; • difficulties in staffing and managing multi-national operations; • limitations on our ability to enforce legal rights and remedies; • reduced protection of intellectual property rights; • other risks arising out of foreign sovereignty over the areas where our operations are conducted; and • increasingly complex laws and regulations concerning privacy and data security, including, but not limited to, the European Union's General Data Protection Regulation.
Added
We believe that the quality and production capacity of our facilities is sufficient to maintain our competitive position for the foreseeable future. The following table identifies the principal facilities of our segments: Specialty Engineered Materials Color, Additives and Inks 1. Birmingham, Alabama 1. Glendale, Arizona 30. Guangzhou, China 60. Konstantynow, Poland 2. Mesa, Arizona 2. Phoenix, Arizona 31.
Removed
We could be adversely affected by violations of the FCPA, UK Bribery Act and similar worldwide anti-bribery laws, as well as export controls and economic sanction laws. Our policies mandate compliance with these laws.
Added
Pudong, China 61. Kutno, Poland 3. Englewood, Colorado 3. Bethel, Connecticut 32. & 33. Shanghai, China (c) 62. Jeddah, Saudi Arabia 4. Montrose, Colorado 4. Dalton, Georgia 34. Suzhou, China 63. Riyadh, Saudi Arabia 5. North Haven, Connecticut 5. Kennesaw, Georgia 35. Tianjin, China 64. Yanbu, Saudi Arabia 6. McHenry, Illinois 6. West Chicago, Illinois 36. Cota, Colombia 65.
Removed
We operate in many parts of the world that have experienced governmental corruption to some degree and, in certain circumstances, strict compliance with anti-bribery laws may conflict with local customs and practices. We cannot assure you that our internal controls and procedures will always protect us if reckless or criminal acts are committed by our employees or agents.
Added
Jurong, Singapore 7. Winona, Minnesota 7. La Porte, Indiana 37. Aland, Finland 66. Randburg, South Africa 8. Greenville, North Carolina 8. Lewiston, Maine 38. Cergy, France 67. Alicante, Spain 9. Hickory, North Carolina 9. Holden, Massachusetts 39. Tossiat, France 68. Barcelona, Spain 10. Avon Lake, Ohio 10. Albion, Michigan 40. Ahrensburg, Germany 69. Pamplona, Spain 11. Hatfield, Pennsylvania 11.
Removed
If we are found to be liable for FCPA, UK Bribery Act, export control or sanction violations, we could suffer from criminal or civil penalties or other sanctions, including loss of export privileges or authorization needed to conduct aspects of our international business, which could have a material adverse effect on our business.
Added
Minneapolis, Minnesota 41. Lahnstein, Germany 70. Sant Andreu, Spain 12. Changzhou, China 12. St. Louis, Missouri 42. Guatemala City, Guatemala 71. Malmoe, Sweden 13. Laiwu, China 13. Mooresville, North Carolina 43. Gyor, Hungary 72. Taoyuan, Taiwan 14. Shenzhen, China 14. Berea, Ohio 44. Kalol, India 73. Bangkok, Thailand 15. Suzhou, China 15. Massillon, Ohio 45. Pune, India (d) 74.
Removed
Any of these risks could have an adverse effect on our international operations by reducing demand for our products. 8 AVIENT CORPORATION Business Risks Demand for and supply of our products and services have in the past been and may in the future be adversely affected by several factors, some of which we cannot predict or control.
Added
Phan Thong, Thailand 16. Gaggenau, Germany 16. North Baltimore, Ohio 46. Rania, India 75. Gazientep, Turkey 17. Melle, Germany 17. Norwalk, Ohio 47. Vashere, India 76. Gebze, Turkey 18. Drachten, Netherlands 18. Lehigh Valley, Pennsylvania 48. Tangerang, Indonesia 77. Barnsley, United Kingdom 19. Geleen, Netherlands 19. Mountain Top, Pennsylvania 49. Naas, Ireland 78. Knowsley, United Kingdom 20. Heerlen, Netherlands 20.
Removed
Several factors have in the past and may in the future affect the demand for and supply of our products and services, including: • economic downturns or other volatility in the significant end markets that we serve; • product obsolescence or technological changes that unfavorably alter the value/cost proposition of our products and services; • competition from existing and unforeseen polymer and non-polymer based products; • declines in general economic conditions or reductions in industrial production growth rates, both domestically and globally, which could impact our customers’ ability to pay amounts owed to us; • changes in environmental regulations that limit our ability to sell our products and services in specific markets; • changes in laws and regulations regarding plastic materials; and • inability to obtain raw materials or supply products to customers due to factors such as supplier work stoppages, supply shortages, plant outages or regulatory changes that may limit or prohibit overland transportation of certain hazardous materials and exogenous factors, like severe weather.
Added
Vonore, Tennessee 50. Lomagna, Italy 79. Thuan An, Vietnam 21. Barbastro, Spain 21. Winchester, Virginia 51. Merate, Italy Suwanee, Georgia (b) 22. Istanbul, Turkey 22. Lomas de Zamora, Argentina 52. Pogliano, Italy 23. Leek, United Kingdom 23. Assesse, Belgium 53. Butterworth, Malaysia Maryland Heights, Missouri (b) 24. Louvain-La-Nueve, Belgium 54. Santa Clara, Mexico Shanghai, China (b) 25. Itupeva, Brazil 55.
Removed
If any of these events occur in the future, the demand for and supply of our products and services could suffer and potentially lead to asset impairment or otherwise adversely affect our results. We may experience challenges in successfully integrating recent acquisitions.
Added
Toluca, Mexico Stanley, North Carolina (b) 26. Suzano, Brazil 56. Auckland, New Zealand Singapore, Singapore (b) 27. Toronto, Canada 57. Karachi, Pakistan Pune, India (a), (d) 28. Maipu, Chile 58. Lahore, Pakistan Pamplona, Spain (a) 29. Chuzhou, China 59. Lima, Peru (a) Facility is not included in manufacturing plants total as it is also included as part of another segment.
Removed
Failure to successfully or cost effectively integrate recent acquisitions, including APM (as defined below), could have an adverse effect on our financial condition, results of operations and cash flow. Over the next three years we are investing in a cloud-based ERP system, S/4HANA, which is expected to help us to further integrate acquisitions, better serve customers and achieve synergies.
Added
(b) Facility is not included in manufacturing plants total as it is a design center/lab. (c) There are two manufacturing plants located in Shanghai, China. (d) Location also includes a design center/lab.
Removed
While we have invested in both internal and external resources for this system implementation, including ongoing training, there are risks associated with a system implementation. Our manufacturing operations are subject to hazards and other risks associated with specialty formulation and the related storage and transportation of raw materials, products and waste.
Removed
The occurrence of an operating problem at our facilities may have a material adverse effect on the productivity and profitability of a particular manufacturing facility or on our operations as a whole, during and after the period of these operating difficulties.
Removed
Operating problems may cause personal injury and/or loss of life, customer attrition and severe damage to or destruction of property and equipment and environmental damage. We are subject to present claims and potential future claims with respect to workplace exposure, workers’ compensation and other matters.
Removed
Our property and casualty insurance, which we believe are of the types and in the amounts that are customary for the industry, may not fully insure us against all potential hazards that are incident to our business or otherwise could occur. Environmental, health and safety laws and regulations impact our operations and financial statements.
Removed
Our operations on, and ownership of, real property are subject to environmental, health and safety laws and regulations at the national, state and local governmental levels (including, but not limited to, the Restriction of Hazardous Substances (RoHS) and the Consumer Product Safety Improvement Act of 2008).
Removed
The nature of our business exposes us to compliance costs and risks of liability under these laws and regulations due to the production, storage, transportation, recycling or disposal and/or sale of materials that can cause contamination and other harm to the environment or personal injury if they are improperly handled and released.
Removed
Environmental compliance requirements imposed on us and our vendors may significantly increase the costs of these activities involving raw materials, energy, finished products and wastes.
Removed
We may incur substantial costs, including fines, criminal or civil sanctions, damages, and remediation costs, or experience interruptions in our operations for violations of these laws. 9 AVIENT CORPORATION Electricity, fuel, logistics and raw material availability and costs could cause volatility in our results.
Removed
The cost of our electricity, fuel, logistics and raw materials may not correlate with changes in the prices we receive for our products, either in the direction of the price change or in absolute magnitude. Electricity and raw materials costs represent a substantial part of our manufacturing costs.
Removed
Most of the raw materials we use are commodities and the price of each can fluctuate widely for a variety of reasons, including changes in availability because of major capacity additions or reductions or significant facility operating problems.
Removed
Other external factors beyond our control can also cause fluctuations in raw materials prices, which could negatively impact demand for our products and cause volatility in our results. We face competition from other companies. We encounter competition in price, payment terms, delivery, service, performance, product innovation, product recognition and quality, depending on the product involved.
Removed
We expect that our competitors will continue to develop and introduce new and enhanced products, which could cause a decline in the market acceptance of our products. In addition, our competitors could cause a reduction in the selling prices of some of our products as a result of intensified price competition.
Removed
Competitive pressures could also result in the loss of customers. Cybersecurity breaches, global information systems security threats and computer crime could pose a risk to our systems, networks and products, which could harm our business.
Removed
We depend on integrated information systems to conduct our business, including communicating with employees and customers, ordering and managing materials from suppliers, shipping products to customers, and analyzing and reporting results of operations. In addition, we store sensitive data, including proprietary business information, intellectual property and confidential employee or other personal data, on our servers and databases.
Removed
Cybersecurity breaches, global information systems security threats and more sophisticated and targeted computer crime pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our data and communications.
Removed
We continue to update our infrastructure, security tools, employee training and processes to protect against security incidents, including both external and internal threats, and to prevent their recurrence; however, our systems, networks and products may nevertheless be vulnerable to advanced persistent threats or other types of system failures.
Removed
Depending on their nature and scope, such threats and system failures could lead to the compromising of confidential information and communications, improper use of our systems and networks, manipulation and destruction of data, defective products, production downtimes and operational disruptions, which in turn could cause customers to cancel orders or otherwise adversely affect our reputation, competitiveness and results of operations.
Removed
We have experienced targeted and non-targeted cybersecurity attacks in the past and we could experience similar incidents in the future. To date, no cybersecurity incident or attack has had a material impact on our business or consolidated financial statements. We are subject to risks associated with climate change and potential climate change legislation, regulation and international agreements.
Removed
Carbon emissions have become the subject of an increasing amount of state and local, regional, national, and international attention. Growing concerns about climate change may result in the imposition of additional regulations or restrictions to which we may become subject.
Removed
These future regulatory developments related to climate change are likely and could increase our operating and compliance costs, thereby impacting our business and consolidated financial statements. From time to time, we establish strategies and expectations related to climate change and other environmental matters.
Removed
Our ability to achieve any such strategies or expectations is subject to numerous factors and conditions, many of which are outside of our control.
Removed
Examples of such factors include, but are not limited to, evolving legal, regulatory, and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.
Removed
Failures or delays (whether actual or perceived) in achieving our strategies or expectations related to climate change and other environmental matters could adversely affect our business, operations, and reputation, and increase risk of litigation. 10 AVIENT CORPORATION Capital and Credit Risks Disruptions in the global credit, financial and/or currency markets could limit our access to credit or otherwise harm our financial results, which could have a material adverse impact on our business.
Removed
Global credit and financial markets experience volatility, including volatility in security prices, liquidity and credit availability, declining valuations of certain investments and significant changes in the capital and organizational structures of certain financial institutions. Market conditions may limit our ability to access the capital necessary to grow and maintain our business.
Removed
Accordingly, we may be forced to delay raising capital, issue debt with shorter tenors than we prefer or pay unattractive interest rates, which could increase our interest expense, decrease our profitability and significantly reduce our financial flexibility. We are exposed to fluctuations in foreign currency exchange rates.
Removed
Any significant change in the value of the currencies of the countries in which we do business against the U.S. dollar, whether precipitated by governmental monetary policy or otherwise, could affect our ability to sell products competitively and control our cost structure, which could have a material adverse effect on our business, financial condition and results of operations.
Removed
For additional detail related to this risk, see Item 7A, "Quantitative and Qualitative Disclosures About Market Risk." The agreements governing our debt, including our revolving credit facility, term loan and other debt instruments, contain various covenants that limit our ability to take certain actions and in certain circumstances require us to meet financial maintenance tests, failure to comply with which could have a material adverse effect on us.
Removed
The agreements governing our senior secured revolving credit facility and our senior secured term loan, and the indentures and credit agreements governing our other debt, contain a number of customary restrictive covenants that, among other things, limit our ability to: sell or otherwise transfer assets, including in a spin-off, incur additional debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct.
Removed
In addition, depending on our level of borrowing, our revolving credit facility requires us to comply under certain circumstances with specific financial tests, under which we are required to achieve certain or specific financial and operating results. Our ability to comply with these provisions may be affected by events beyond our control.
Removed
A breach of any of these covenants would result in a default under such agreements and instruments, which in certain circumstances could be a default under all of these agreements and instruments. In the event of any default, our lenders could elect to declare all amounts borrowed under the agreements, together with accrued interest thereon, to be due and payable.
Removed
In such event, we cannot assure that we would have sufficient assets to pay debt then outstanding under the agreements governing our debt.
Removed
Furthermore, certain of these agreements condition our ability to obtain additional borrowing capacity, engage in certain transactions or take certain other actions, on our achievement of certain or specific financial and operating results, although our failure to achieve such results would not result in a default under such agreements.
Removed
Any future refinancing of our senior secured revolving credit facility or other debt may contain similar restrictive covenants. Our ability to service long-term indebtedness requires cash.
Removed
Our ability to pay interest on our debt and to satisfy our other debt obligations depends in part upon our future financial and operating performance and that of our subsidiaries, and upon our ability to renew or refinance borrowings.
Removed
Prevailing economic conditions and financial, business, competitive, legislative, regulatory and other factors, many of which are beyond our control, affect our ability to make these payments.
Removed
While we believe that cash flow from our current level of operations, available cash and available borrowings under our revolving credit facility provide adequate sources of liquidity, a significant drop in operating cash flow resulting from economic conditions, competition or other uncertainties beyond our control could create the need for alternative sources of liquidity.
Removed
If we are unable to generate sufficient cash flow to meet our debt service obligations, we will have to pursue one or more alternatives, such as reducing or delaying capital or other expenditures, refinancing debt, selling assets, or raising equity capital. 11 AVIENT CORPORATION We have a significant amount of goodwill, and any future goodwill impairment charges could adversely impact our results of operations.
Removed
As of December 31, 2023, we had goodwill of $1,719.3 million.
Removed
The future occurrence of a potential indicator of impairment, such as a significant adverse change in business climate, an adverse action or assessment by a regulator, unanticipated competition, a material negative change in relationships with customers, strategic decisions made in response to economic or competitive conditions could result in goodwill impairment charges, which could adversely impact our results of operations.
Removed
For additional information on the results of our annual impairment testing, see Note 4, Goodwill and Intangible Assets , to the accompanying consolidated financial statements and “Critical Accounting Policies and Estimates” included in Item 7, " Management’s Discussion and Analysis of Financial Condition and Results of Operations .”
Item 4. Mine Safety Disclosures
Mine Safety Disclosures — required of mining issuers
14 edited+6 added−5 removed4 unchanged
Item 4. Mine Safety Disclosures
Mine Safety Disclosures — required of mining issuers
14 edited+6 added−5 removed4 unchanged
2023 filing
2024 filing
John Midea, Jr. : Senior Vice President, Global Operations and Process Improvement, February 2015 to date. President and Chief Executive Officer, Resco Products (a refractory products company) from August 2012 to October 2014. President and Chief Operating Officer, Ennis Traffic Safety Solutions (a traffic safety and infrastructure company) from June 2008 to July 2012.
M. John Midea, Jr. : Senior Vice President, Global Operations and Process Improvement, February 2015 to date. President and Chief Executive Officer, Resco Products (a refractory products company) from August 2012 to October 2014. President and Chief Operating Officer, Ennis Traffic Safety Solutions (a traffic safety and infrastructure company) from June 2008 to July 2012.
Gajewski : Senior Vice President, Chief Human Resources Officer, February 2023 to date. Global HR Director, Talent Management and Corporate Functions, September 2022 to January 2023. Global HR Director, Color, Additives and Inks, February 2017 to August 2022 including an international assignment from December 2017 to September 2019 with additional responsibility for the EMEA and India region.
Kristen A. Gajewski : Senior Vice President and Chief Human Resources Officer, February 2023 to date. Global HR Director, Talent Management and Corporate Functions, September 2022 to January 2023. Global HR Director, Color, Additives and Inks, February 2017 to August 2022 including an international assignment from December 2017 to September 2019 with additional responsibility for the EMEA and India region.
He also served as a technical sales executive for Bayer AG (a manufacturer of pigments, dyestuffs, additives, chemical auxiliaries for textile, leather, paper and plastic industry) with its Specialty Products division from 1997 to 1999. Chris L. Pederson : Senior Vice President, President of Specialty Engineered Materials, November 2018 to date.
He also served as a technical sales executive for Bayer AG (a manufacturer of pigments, dyestuffs, additives, chemical auxiliaries for textile, leather, paper and plastic industry) with its Specialty Products division from 1997 to 1999. Christopher L. Pederson : Senior Vice President and President of Specialty Engineered Materials, November 2018 to date.
Vice President and Treasurer at Celanese Corporation (a global technology leader in the production of specialty materials and chemical products) from 2015 to 2017. Chief Financial Officer, Material Solutions at Celanese Corporation from 2011 to 2015. Prior to 2011, Ms. Beggs worked in various roles of increasing responsibility at Celanese in both business and finance from May 2007. Kristen A.
Vice President and Treasurer at Celanese Corporation (a global technology leader in the production of specialty materials and chemical products) from 2015 to 2017. Chief Financial Officer, Material Solutions at Celanese Corporation from 2011 to 2015. Prior to 2011, Ms. Beggs worked in various roles of increasing responsibility at Celanese in both business and finance from May 2007. Philip G.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 13 AVIENT CORPORATION INFORMATION ABOUT OUR EXECUTIVE OFFICERS Executive officers are elected by our Board of Directors to serve one-year terms. The following table lists the name of each person serving as an executive officer of the Company, their age, and position with the Company as of February 7, 2024.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 13 AVIENT CORPORATION INFORMATION ABOUT OUR EXECUTIVE OFFICERS Executive officers are elected by our Board of Directors to serve one-year terms. The following table lists the name of each person serving as an executive officer of the Company, their age, and position with the Company as of February 10, 2025.
Vice President, North American - General Industrial, Valspar Corporation (a manufacturer of paints and coatings) from June 2007 to May 2008. Vice President and General Manager, Power Coatings, Valspar Corporation from February 2002 to June 2007. 14 AVIENT CORPORATION Woon Keat Moh : Senior Vice President, President Color, Additives and Inks — Americas and Asia, April 2020 to date.
Vice President, North American - General Industrial, Valspar Corporation (a manufacturer of paints and coatings) from June 2007 to May 2008. Vice President and General Manager, Power Coatings, Valspar Corporation from February 2002 to June 2007. Woon Keat Moh : Senior Vice President and President of Color, Additives and Inks, July 2024 to date.
From October 1999 to January 2010, Mr. Moh worked for Clariant AG (a global manufacturer of color and additives masterbatch) in various roles of increasing responsibility, culminating in a commercial leadership role in Southeast Asia.
Sales Director of Color and Additives Asia, February 2011 to November 2014. Business Development Manager, Color and Additives Asia, February 2010 to January 2011. From October 1999 to January 2010, Mr. Moh worked for Clariant AG (a global manufacturer of color and additives masterbatch) in various roles of increasing responsibility, culminating in a commercial leadership role in Southeast Asia.
Rathbun 51 Senior Vice President, Mergers and Acquisitions Ashish K. Khandpur, Ph.D. : President and Chief Executive Officer, December 2023 to date. Group President of the Transportation & Electronics business group for 3M Company ("3M") (a global manufacturing and technology company) from April 2021 to November 2023. During his 28-year career with 3M, Dr.
Rathbun 52 Senior Vice President, Mergers and Acquisitions Amy M. Sanders 52 Senior Vice President, General Counsel and Secretary Ashish K. Khandpur, Ph.D. : President, Chief Executive Officer and Board Member, December 2023 to date. Group President of the Transportation & Electronics business group for 3M Company (a global manufacturing and technology company) ("3M") from April 2021 to November 2023.
Senior Vice President, President of Color, Additives and Inks, January 2020 to March 2020. Vice President of Asia, January 2019 to December 2019. General Manager of Specialty Engineered Materials Asia, December 2014 to December 2018. Sales Director of Color and Additives Asia, February 2011 to November 2014. Business Development Manager, Color and Additives Asia, February 2010 to January 2011.
Senior Vice President and President of Color, Additives and Inks — Americas and Asia, April 2020 to July 2024. Senior Vice President and President of Color, Additives and Inks, January 2020 to March 2020. Vice President of Asia, January 2019 to December 2019. General Manager of Specialty Engineered Materials Asia, December 2014 to December 2018.
Rathbun : Senior Vice President, Mergers and Acquisitions, January 2016 to date. General Manager, Specialty Engineered Materials North America, February 2013 to January 2016. Vice President, Mergers and Acquisitions, June 2011 to February 2013. Mr. Rathbun served as Senior Vice President, Mergers and Acquisitions, Moelis & Company (an American global independent investment bank) from January 2008 to June 2011.
Pederson served as a Senior Engineer at Boeing (a global aerospace company) from 1992 to 2001. Joel R. Rathbun : Senior Vice President, Mergers and Acquisitions, January 2016 to date. General Manager, Specialty Engineered Materials North America, February 2013 to January 2016. Vice President, Mergers and Acquisitions, June 2011 to February 2013. Mr.
He also served as Executive Director, Mergers and Acquisitions of CIBC World Markets (an investment bank in the domestic and international equity and debt capital markets) from 2006 to 2008. 15 AVIENT CORPORATION PART II
Rathbun served as Senior Vice President, Mergers and Acquisitions, Moelis & Company (an American global independent investment bank) from January 2008 to June 2011. He also served as Executive Director, Mergers and Acquisitions of CIBC World Markets (an investment bank in the domestic and international equity and debt capital markets) from 2006 to 2008. Amy M.
Gajewski held HR roles of increasing responsibility at AkzoNobel Decorative Coatings (a business unit of AkzoNobel specializing in manufacturing paints and coatings) from May 2009 to June 2013. Michael A. Garratt : Senior Vice President, President Color, Additives and Inks — EMEA, April 2020 to date. Senior Vice President, Chief Commercial Officer, April 2016 to March 2020.
Gajewski held HR roles of increasing responsibility at AkzoNobel Decorative Coatings (a business unit of AkzoNobel specializing in manufacturing paints and coatings) from May 2009 to June 2013. 14 AVIENT CORPORATION Michael J. Irwin : Senior Vice President, New Business Development & Marketing Excellence, October 2024 to date.
John Midea, Jr. 59 Senior Vice President, Global Operations and Process Improvement Woon Keat Moh 50 Senior Vice President, President of Color, Additives and Inks — Americas and Asia Chris L. Pederson 57 Senior Vice President, President of Specialty Engineered Materials Vinod Purayath 45 Senior Vice President and Chief Technology Officer Joel R.
Irwin 46 Senior Vice President, New Business Development & Marketing Excellence M. John Midea, Jr. 60 Senior Vice President, Global Operations and Process Improvement Woon Keat Moh 51 Senior Vice President and President of Color, Additives and Inks Christopher L. Pederson 58 Senior Vice President and President of Specialty Engineered Materials Joel R.
Name Age Position Ashish K. Khandpur 56 President and Chief Executive Officer Jamie A. Beggs 47 Senior Vice President and Chief Financial Officer Kristen A. Gajewski 42 Senior Vice President, Chief Human Resources Officer Michael A. Garratt 60 Senior Vice President, President Color, Additives and Inks — EMEA M.
Name Age Position Ashish K. Khandpur 57 President, Chief Executive Officer and Board Member Jamie A. Beggs 48 Senior Vice President and Chief Financial Officer Philip G. Clark, Jr. 55 Senior Vice President and Chief Technology Officer Kristen A. Gajewski 43 Senior Vice President and Chief Human Resources Officer Michael J.
Removed
Senior Vice President, President of Performance Products and Solutions, September 2013 to April 2016. President, Marmon Utility (a manufacturer of medium-high voltage utility, subsea and down-hole power cables and molded insulator systems) from March 2011 to September 2013. Chief Operating Officer, Excel Polymers (a custom thermoset rubber formulator) from November 2009 to December 2010.
Added
Clark, Jr., Ph.D. : Senior Vice President and Chief Technology Officer, November 2024 to date. Senior Vice President and Chief Technology Officer, Nouryon (global specialty chemicals organization) from December 2022 to October 2024. Vice President for Research and Development in the Automotive and Aerospace Solutions division at 3M from August 2019 to December 2022.
Removed
Vice President and General Manager - Americas Compounding and Performance Additives, Excel Polymers from March 2009 to November 2009. Vice President and General Manager - Industrial and Consumer, Excel Polymers from December 2005 to March 2009. From April 1996 to June 2005, Mr.
Added
Clark advanced through various positions including Technical Director, Corporate Research Process Laboratory, from March 2017 to July 2019; Laboratory Manager, Corporate Research Materials Laboratory, from March 2016 to February 2017; Laboratory Manager (Korea), from March 2015 to March 2016; Laboratory Manager, Electronics Materials Solutions division, from September 2010 to March 2015; Technical Manager, Electronics Markets Materials division, from April 2007 to August 2010; and Advanced Product Development Specialist, Electronics Markets Materials division from July 2005 to March 2007.
Removed
Garratt worked for DuPont Dow Elastomers, a joint venture of Dupont and Dow (global manufacturers of engineered thermoset rubber and thermoplastic elastomer materials) in market development and product management positions, culminating in a regional commercial leadership role for Europe, the Middle East and Africa. M.
Added
Vice President, Abrasive Systems Division at 3M from October 2018 to October 2024. During his 22-year career at 3M, Mr. Irwin progressed through a series of roles, including U.S. Vice President, Abrasive Systems division, from June 2018 to October 2018; U.S.
Removed
Pederson served as a Senior Engineer at Boeing (a global aerospace company) from 1992 to 2001. Vinod Purayath, P.h.D. : Senior Vice President and Chief Technology Officer, June 2021 to date. Vice President, Technology, SunRise Memory Corp. (a semiconductor company based in California) from April 2019 to June 2021. Managing Director, Selective Removal Products Division, of Applied Materials, Inc.
Added
Business Director, from March 2017 to May 2018; Regional Business Leader, Precision Grinding & Finishing, from January 2016 to March 2017; Global Business Leader, from February 2014 to December 2015; Global Business manager, from September 2012 to February 2014; Global Market Development Manager, from February 2011 to August 2012; Global marketing Manager, from July 2010 to January 2011; Marketing Supervisor, from December 2008 to June 2010; and other positions beginning in November 2002 including Lean Six Sigma Black Belt.
Removed
(a supplier of equipment, services and software for the manufacture of semiconductor chips) from September 2013 to March 2019. Dr. Purayath also served in various positions at Sandisk (a manufacturer of flash memory products) from 2005 to 2013, and as a Research Fellow at the Japan Advanced Institute for Science and Technology from 2003 to 2005. Joel R.
Added
Sanders : Senior Vice President, General Counsel and Secretary, April 2024 to date. Senior Vice President and Deputy Chief Legal Officer, Global Operations, Eaton Corporation (a power management company) from October 2023 to April 2024. Senior Vice President and Deputy General Counsel, Business Counsel, 3M from February 2022 to October 2023. Over her 20-year career at 3M, Ms.
Added
Sanders held roles of increasing responsibility within the legal department, including Vice President and General Counsel, Transportation and Electronics Business Group, from July 2017 to February 2022; Assistant General Counsel, from March 2016 to July 2017, among other roles from November 2002 to March 2016. 15 AVIENT CORPORATION PART II
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
3 edited+0 added−0 removed2 unchanged
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
3 edited+0 added−0 removed2 unchanged
2023 filing
2024 filing
On December 9, 2020, we announced that we would increase our share buyback by an additional 5.0 million shares. As of December 31, 2023, approximately 5.0 million shares remained available for purchase under these authorizations, which have no expiration.
On December 9, 2020, we announced that we would increase our share buyback by an additional 5.0 million shares. As of December 31, 2024, approximately 5.0 million shares remained available for purchase under these authorizations, which have no expiration.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common shares, $0.01 par value per share, are traded on the New York Stock Exchange under the symbol “AVNT.” As of February 7, 2024, there were 1,421 holders of record of our common shares. We currently have an authorized common share repurchase program.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common shares, $0.01 par value per share, are traded on the New York Stock Exchange under the symbol “AVNT.” As of February 10, 2025, there were 1,362 holders of record of our common shares. We currently have an authorized common share repurchase program.
During the twelve months ended December 31, 2023, we did not repurchase any common shares.
During the twelve months ended December 31, 2024, we did not repurchase any common shares.
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
50 edited+25 added−34 removed32 unchanged
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
50 edited+25 added−34 removed32 unchanged
2023 filing
2024 filing
Life expectancy is another significant assumption that impacts our pension and other post-retirement benefits obligation, which is based on mortality data and improvement scales issued by the Society of Actuaries. Additional information related to the accounting for pension and other post-retirement benefits is found in Note 11, Employee Benefit Plans .
Life expectancy is another significant assumption that impacts our pension and other post-retirement benefits obligation, which is based on mortality data and improvement scales issued by the Society of Actuaries. Additional information related to the accounting for pension and other post-retirement benefits is found in Note 10, Employee Benefit Plans .
In some cases, the Company recovers a portion of the costs relating to these obligations from insurers or other third parties, and the recovery is recognized when realization of the proceeds is deemed as probable. 24 AVIENT CORPORATION Environmental liabilities represents our best estimate of the remaining probable costs based upon information and technology currently available.
In some cases, the Company recovers a portion of the costs relating to these obligations from insurers or other third parties, and the recovery is recognized when realization of the proceeds is deemed as probable. Environmental liabilities represents our best estimate of the remaining probable costs based upon information and technology currently available.
Unless otherwise noted, the discussion that follows includes a comparison of our results of operations, liquidity and capital resources, and cash flows for fiscal years 2023 and 2022.
Unless otherwise noted, the discussion that follows includes a comparison of our results of operations, liquidity and capital resources, and cash flows for fiscal years 2024 and 2023.
For a discussion of changes from fiscal year 2021 to fiscal year 2022, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 22, 2023.
For a discussion of changes from fiscal year 2023 to fiscal year 2022, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 20, 2024.
Our products include specialty engineered materials, performance fibers, advanced composites, and color and additive systems. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants and fluoropolymer and silicone colorants.
Our products include specialty engineered materials, performance fibers, advanced composites, and color and additive solutions. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants and silicone colorants.
These costs are included in Corporate . Avient has two reportable segments: (1) Color, Additives and Inks and (2) Specialty Engineered Materials. Our segments are further discussed in Note 15, Segment Information , to the accompanying consolidated financial statements.
These costs are included in Corporate . 20 AVIENT CORPORATION Avient has two reportable segments: (1) Color, Additives and Inks and (2) Specialty Engineered Materials. Our segments are further discussed in Note 14, Segment Information , to the accompanying consolidated financial statements.
Income Taxes We account for income taxes using the asset and liability method under FASB ASC Topic 740. Under the asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.
Income Taxes We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.
Additional information related to the accounting for income taxes is found in Note 13, Income Taxes . Goodwill Goodwill is evaluated annually for impairment as of October 1 using either a quantitative or qualitative analysis.
Additional information related to the accounting for income taxes is found in Note 12, Income Taxes . 25 AVIENT CORPORATION Goodwill Goodwill is evaluated annually for impairment as of October 1 using either a quantitative or qualitative analysis.
Headquartered in Avon Lake, Ohio, with 2023 sales of $3.1 billion from continuing operations, we have manufacturing and warehouses around the globe, with 61% of our sales to customers outside the United States.
Headquartered in Avon Lake, Ohio, with 2024 sales of $3.2 billion from continuing operations, we have manufacturing and warehouses around the globe, with 60% of our sales to customers outside the United States.
Twelve Months Ended December 31, (In millions) 2023 2022 U.S. federal income tax rate 21.0 % 21.0 % Net tax on GILTI and FDII 1.9 2.8 International tax on certain current and prior year earnings 3.9 0.2 Non-deductible acquisition related costs — 0.9 Non-deductible interest 5.3 2.9 Research and development credit (3.7) (5.0) Capital losses (5.4) (88.1) State and local tax, net (2.3) (4.0) International tax rate differential 0.2 (5.5) International permanent items (7.5) 12.1 Net impact of uncertain tax positions (5.3) 12.9 Changes in valuation allowances 3.6 15.4 Other 0.9 4.2 Effective income tax rate 12.6 % (30.2) % The consolidated effective income tax rate from continuing operations was 12.6%, which was lower than the U.S. federal rate of 21%.
Twelve Months Ended December 31, (In millions) 2024 2023 U.S. federal income tax rate 21.0 % 21.0 % Net tax on GILTI and Subpart F Income (0.5) 2.2 International tax on certain current and prior year earnings 1.6 3.9 Non-deductible interest 0.4 5.3 Research and development credit (1.7) (3.7) Capital losses — (5.4) State and local tax, net (0.7) (2.3) International tax rate differential 1.7 0.2 International permanent items 0.7 (7.5) U.S. permanent items 2.1 2.5 Net impact of uncertain tax positions (1.1) (5.3) Changes in valuation allowances — 3.6 Other 0.6 (1.9) Effective income tax rate 24.1 % 12.6 % The consolidated effective income tax rate from continuing operations was 24.1%, which was higher than the U.S. federal rate of 21%.
GAAP) requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes. We base our estimates on historical experience and assumptions that we believe are reasonable considering the related facts and circumstances.
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes. We base our estimates on historical experience and assumptions that we believe are reasonable considering the related facts and circumstances.
Examples of how our materials science is enabling sustainability for our customers include developing unique technologies that improve the recyclability of products and allow recycled content to be incorporated in products, thus advancing a more circular economy; light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation and reduce carbon footprint; and sustainable infrastructure solutions that increase energy efficiency, renewable energy, natural resource conservation and fiber optic / 5G network accessibility.
Examples include developing unique technologies that improve the recyclability of products and allow recycled content to be incorporated in products, thus advancing a more circular economy; light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation and reduce the carbon footprint; and infrastructure solutions that are designed to increase energy efficiency, renewable energy, and natural resource conservation.
Additional information related to the accounting for environmental liabilities is found in Note 12, Commitments and Contingencies . Acquisitions of Businesses The acquisition of a business is accounted for using the acquisition method of accounting which requires assets and liabilities to be recognized at their fair values on the acquisition date.
Acquisitions of Businesses The acquisition of a business is accounted for using the acquisition method of accounting which requires assets and liabilities to be recognized at their fair values on the acquisition date.
Cash Flows The following table summarizes our cash flows from operating, investing and financing activities: (In millions) 2023 2022 2021 Cash provided by (used by): Operating Activities $ 201.6 $ 398.4 $ 233.8 Investing Activities (94.2) (504.0) (150.2) Financing Activities (201.7) 166.4 (114.6) Effect of exchange rate on cash (1.0) (20.9) (17.3) Net (decrease) increase in cash and cash equivalents $ (95.3) $ 39.9 $ (48.3) Operating Activities In 2023, net cash provided by operating activities decreased to $201.6 million as compared to $398.4 million in 2022, driven primarily by lower earnings and taxes paid associated with the sale of the Distribution business, partially offset by a decrease in working capital.
Cash Flows The following table summarizes our cash flows from operating, investing and financing activities: (In millions) 2024 2023 2022 Cash provided by (used by): Operating Activities $ 256.8 $ 201.6 $ 398.4 Investing Activities (120.6) (94.2) (504.0) Financing Activities (120.9) (201.7) 166.4 Effect of exchange rate on cash (16.6) (1.0) (20.9) Net (decrease) increase in cash and cash equivalents $ (1.3) $ (95.3) $ 39.9 Operating Activities Net cash provided by operating activities increased to $256.8 million in 2024, as compared to $201.6 million in 2023, driven primarily by higher earnings and lower tax payments as 2023 included tax payments of $104.1 million associated with the gain on sale of our Distribution business.
Factors that could cause or contribute to these differences include, but are not limited to, those discussed below and elsewhere in this Annual Report on Form 10-K, particularly in “ Cautionary Note on Forward-Looking Statements ” and Item 1A, “ Risk Factors .” Our Business We are a premier formulator of specialized and sustainable materials solutions that transform customer challenges into opportunities, bringing new products to life for a better world.
Factors that could cause or contribute to these differences include, but are not limited to, those discussed below and elsewhere in this Annual Report on Form 10-K, particularly in “ Cautionary Note on Forward-Looking Statements ” and Item 1A, “ Risk Factors .” Our Business We are an innovator of materials solutions to help our customers succeed, while enabling a sustainable world.
(In millions) 2023 2022 Senior secured revolving credit facility due 2026 $ — $ — Senior secured term loan due 2026 — 423.6 Senior secured term loan due 2029 709.0 385.5 5.75% senior notes due 2025 647.2 645.2 7.125% senior notes due 2030 716.2 714.9 Other Debt 7.6 9.7 Total Debt $ 2,080.0 $ 2,178.9 Less short-term debt 9.5 2.2 Total long-term debt, net of current portion $ 2,070.5 $ 2,176.7 On August 16, 2023, the Company refinanced its senior secured term loans by amending its Credit Agreement (the Term Loan Amendment).
(In millions) 2024 2023 Senior secured revolving credit facility due 2026 $ — $ — Senior secured term loan due 2029 705.2 709.0 7.125% senior notes due 2030 717.5 716.2 6.250% senior notes due 2031 640.8 — 5.75% senior notes due 2025 — 647.2 Other Debt 3.5 7.6 Total Debt $ 2,067.0 $ 2,080.0 Less short-term debt 7.7 9.5 Total long-term debt, net of current portion $ 2,059.3 $ 2,070.5 On April 9, 2024, the Company refinanced its senior secured term loan by amending the credit agreement governing such term loan (the Term Loan Amendment).
Events or circumstances that may result in an impairment review include changes in industry and market considerations, cost factors, financial performance, and other relevant entity-specific events that could affect inputs used to determine the respective fair values of the indefinite-lived intangible assets. 26 AVIENT CORPORATION Quantitative analyses are performed by estimating the fair value for each indefinite-lived trade name using a royalty relief methodology.
Events or circumstances that may result in an impairment review include changes in industry and market considerations, cost factors, financial performance, and other relevant entity-specific events that could affect inputs used to determine the respective fair values of the indefinite-lived intangible assets.
Long-term trends that currently provide opportunities to leverage our strategy and commitment to sustainability include improving health and wellness, protecting the environment, globalizing and localizing and increasing energy efficiency.
Long-term trends that currently provide opportunities to leverage our strategy include improving health and wellness, protecting the environment, and increasing need for power and electricity.
(2) Represents estimated contractual interest payments for all outstanding debt. (3) This represents estimates related to the funding obligations of our pension and other post retirement plans. These contributions are based on actuarial estimates of future assumed payments based upon retirement and payment patterns for a 10-year period.
Excludes cash receipts from cross-currency swaps as described in Note 15, Derivatives and Hedging . (2) This represents estimates related to the funding obligations of our pension and other post retirement plans. These contributions are based on actuarial estimates of future assumed payments based upon retirement and payment patterns for a 10-year period.
In addition, 2022 included a $30.9 million mark-to-market loss on derivative contracts entered into to hedge the purchase price of the APM Acquisition. Income taxes A reconciliation of the applicable U.S. federal statutory tax rate to the consolidated effective income tax rate from continuing operations along with a description of significant or other reconciling items is included below.
Income taxes A reconciliation of the applicable U.S. federal statutory tax rate to the consolidated effective income tax rate from continuing operations along with a description of significant or other reconciling items is included below.
The amendment aligned the maturity date for all of the Company’s term loan debt to August 29, 2029. The amendment also aligned and reduced the interest rates per annum, which now are either (i) Adjusted Term SOFR (as defined in the Term Loan Amendment) plus 2.50%, or (ii) a Base Rate (as defined in the Term Loan Amendment) plus 1.50%.
The Term Loan Amendment reduced the interest rates per annum by 50 basis points, which are now either (i) Adjusted Term SOFR (as defined in the Term Loan Amendment) plus 2.00%, or (ii) a Base Rate (as defined in the Term Loan Amendment) plus 1.00%.
The agreements governing our Revolving Credit Facility and our senior secured term loan, and the indentures and credit agreements governing other debt contain a number of customary financial and restrictive covenants. As of December 31, 2023, we were in compliance with all customary financial and restrictive covenants pertaining to our debt.
As of December 31, 2024, we had no borrowings outstanding under our Revolving Credit Facility, which had remaining availability of $211.4 million. The agreements governing our Revolving Credit Facility and our senior secured term loan, and the indentures and credit agreements governing other debt contain a number of customary financial and restrictive covenants.
A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each indefinite-lived trade name.
The qualitative approach includes assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales, discount rates, other relevant qualitative factors. These trends and factors were compared to the assumptions used in the 2023 quantitative analysis.
By laddering the maturity structure, we avoid concentrations of debt maturities, reducing liquidity risk. We may from time to time seek to retire or purchase our outstanding debt with cash and/or exchanges for equity securities, in open market purchases, privately negotiated transactions or otherwise. We may also seek to repurchase our outstanding common shares.
We may from time to time seek to retire or purchase our outstanding debt with cash on hand and/or exchanges for equity securities, in open market purchases, privately negotiated transactions or otherwise. We may also seek to repurchase our outstanding common shares. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.
The results of the Distribution business are presented as discontinued operations for all periods presented. 18 AVIENT CORPORATION Results of Operations Variances — Favorable (Unfavorable) 2023 versus 2022 (Dollars in millions, except per share data) 2023 2022 2021 Change % Change Sales $ 3,142.8 $ 3,396.9 $ 3,315.5 $ (254.1) (7.5) % Cost of sales 2,250.3 2,514.2 2,371.7 263.9 10.5 % Gross margin 892.5 882.7 943.8 9.8 1.1 % Selling and administrative expense 695.7 639.4 664.1 (56.3) (8.8) % Operating income 196.8 243.3 279.7 (46.5) (19.1) % Interest expense, net (115.3) (119.8) (75.2) 4.5 3.8 % Other income (expense), net 5.8 (59.7) (1.0) 65.5 nm Income from continuing operations before income taxes 87.3 63.8 203.5 23.5 36.8 % Income tax (expense) benefit (11.0) 19.3 (51.9) (30.3) nm Net income from continuing operations $ 76.3 $ 83.1 $ 151.6 $ (6.8) (8.2) % (Loss) income from discontinued operations, net of income taxes (0.1) 620.3 79.0 (620.4) nm Net income 76.2 703.4 230.6 (627.2) (89.2) % Net (income) loss attributable to noncontrolling interests (0.5) (0.3) 0.2 (0.2) nm Net income attributable to Avient common shareholders $ 75.7 $ 703.1 $ 230.8 $ (627.4) (89.2) % Earnings per share attributable to Avient common shareholders - basic: Continuing operations $ 0.83 $ 0.91 $ 1.66 Discontinued operations — 6.80 0.87 Total $ 0.83 $ 7.71 $ 2.53 Earnings per share attributable to Avient common shareholders - diluted: Continuing operations $ 0.83 $ 0.90 $ 1.65 Discontinued operations — 6.73 0.86 Total $ 0.83 $ 7.63 $ 2.51 Gross margin as a percentage of sales 28.4 % 26.0 % 28.5 % nm - not meaningful Sales Sales decreased $254.1 million, or 7.5%, in 2023 compared to 2022.
The Company will also recognize pre-tax charges of approximately $15 million associated with unpaid contractual obligations for hosting fees within its Consolidated Statements of Income in the first quarter of 2025. 18 AVIENT CORPORATION Results of Operations Variances — Favorable (Unfavorable) 2024 versus 2023 (Dollars in millions, except per share data) 2024 2023 2022 Change % Change Sales $ 3,240.4 $ 3,142.8 $ 3,396.9 $ 97.6 3.1 % Cost of sales 2,183.7 2,250.3 2,514.2 66.6 3.0 % Gross margin 1,056.7 892.5 882.7 164.2 18.4 % Selling and administrative expense 727.4 695.7 639.4 (31.7) (4.6) % Operating income 329.3 196.8 243.3 132.5 67.3 % Interest expense, net (105.6) (115.3) (119.8) 9.7 8.4 % Other income (expense), net 1.1 5.8 (59.7) (4.7) nm Income from continuing operations before income taxes 224.8 87.3 63.8 137.5 157.5 % Income tax (expense) benefit (54.1) (11.0) 19.3 (43.1) nm Net income from continuing operations $ 170.7 $ 76.3 $ 83.1 $ 94.4 123.7 % (Loss) income from discontinued operations, net of income taxes — (0.1) 620.3 0.1 nm Net income 170.7 76.2 703.4 94.5 124.0 % Net income attributable to noncontrolling interests (1.2) (0.5) (0.3) (0.7) nm Net income attributable to Avient common shareholders $ 169.5 $ 75.7 $ 703.1 $ 93.8 123.9 % Earnings per share attributable to Avient common shareholders - basic: Continuing operations $ 1.86 $ 0.83 $ 0.91 Discontinued operations — — 6.80 Total $ 1.86 $ 0.83 $ 7.71 Earnings per share attributable to Avient common shareholders - diluted: Continuing operations $ 1.84 $ 0.83 $ 0.90 Discontinued operations — — 6.73 Total $ 1.84 $ 0.83 $ 7.63 Gross margin as a percentage of sales 32.6 % 28.4 % 26.0 % nm - not meaningful Sales Sales increased $97.6 million, or 3.1%, in 2024 compared to 2023, primarily driven by increased demand of 4.0%, partially offset by unfavorable foreign currency impacts of 0.9%.
Financing Activities Net cash used by financing activities of $201.7 million in 2023 primarily reflects $105.8 million reduction in long-term debt and $90.2 million of dividends paid. 22 AVIENT CORPORATION Total Debt The following table summarizes debt as of December 31, 2023 and 2022.
Financing Activities Net cash used by financing activities of $120.9 million in 2024 primarily reflects repayment on long-term borrowings of $660.9 million, $94.0 million of dividends paid and $9.6 million of debt financing costs, partially offset by $650.0 million of proceeds received from long-term borrowings. 22 AVIENT CORPORATION Total Debt The following table summarizes debt as of December 31, 2024 and 2023.
We provide value to our customers through our ability to link our knowledge of polymers and formulation technology with our manufacturing and supply chain capabilities to provide value-added solutions to designers, assemblers and processors of plastics. Strategy and Key Trends To achieve our vision, we have implemented a strategy with four core components: specialization, globalization, operational excellence and commercial excellence.
We provide value to our customers through our ability to link our knowledge of polymers and materials science with our manufacturing and supply chain capabilities to provide value-added solutions to designers, assemblers and processors of materials. Strategy and Key Trends In 2024, we developed a refined strategy for the Avient of the future.
For additional information about the acquisitions of businesses see Note 2, Business Combinations . Pension and Other Post-retirement Benefit Plans The measurement of liabilities related to pension plans and other post-retirement benefits plans is based on assumptions related to future events including interest rates, return on plan assets, and mortality assumptions.
Pension and Other Post-retirement Benefit Plans The measurement of liabilities related to pension plans and other post-retirement benefits plans is based on assumptions related to future events including interest rates, return on plan assets, and mortality assumptions. We immediately recognize actuarial gains and losses in our operating results in the year in which the gains or losses occur.
These analyses include estimates of future cash flows that are based on the Company's long-term strategic plan and the applicable weighted-average cost of capital used to discount estimated cash flows. The primary inputs to these estimates require the exercise of judgements, including judgements about appropriate discount rates, revenue growth, royalty rates, and long-term growth rates.
Quantitative analyses are performed by estimating the fair value for each indefinite-lived trade name using a royalty relief methodology. These analyses include estimates of future cash flows that are based on the Company's long-term strategic plan and the applicable weighted-average cost of capital used to discount estimated cash flows.
Further, uncertain tax positions increased, which impacted the rate 12.9%, primarily associated with European restructuring charges which are not expected to realize and a tax effect of non-deductible foreign interest of 2.9%. 20 AVIENT CORPORATION Segment Information Operating income is the primary measure that is reported to our chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance.
Partially offsetting these benefits were non-deductible foreign interest, 5.3%, tax associated with foreign income repatriation, 3.9%, and an increase of our valuation allowance which impacted the rate 3.6%. Segment Information Operating income is the primary measure that is reported to our chief operating decision maker (CODM) for purposes of allocating resources to the segments and assessing their performance.
This lower rate was primarily driven by the recognition of tax benefits of 7.5% associated with tax impairments of investments in affiliates, driven in part from European restructuring actions. Further, we recognized a 5.4% tax benefit from federal and state capital losses associated with an international affiliate's tax status change in 2022.
Further, we recognized a 5.4% tax benefit from federal and state capital losses associated with an international affiliate's tax status change in 2022. Finally, we recognized tax benefits from the reduction of uncertain tax positions as well as the U.S. R&D tax credit, which reduced the tax rate, 5.3% and 3.7%, respectively.
The utilization of certain deferred tax assets is dependent on the amount and timing of taxable income that we will ultimately generate in the future and other factors, such as changes in tax laws. 25 AVIENT CORPORATION We recognize net tax benefits under the recognition and measurement criteria of FASB ASC Topic 740, Income Taxes, which prescribes requirements and other guidance for financial statement recognition and measurement of positions taken or expected to be taken on tax returns.
We recognize net tax benefits under the recognition and measurement criteria, which prescribes requirements and other guidance for financial statement recognition and measurement of positions taken or expected to be taken on tax returns.
Valuation allowances are established when realization of the benefit of deferred tax assets is not deemed to be more likely than not.
Valuation allowances are established when realization of the benefit of deferred tax assets is not deemed to be more likely than not. The utilization of certain deferred tax assets is dependent on the amount and timing of taxable income that we will ultimately generate in the future and other factors, such as changes in tax laws.
The following table summarizes our liquidity as of December 31, 2023: (In millions) Cash and cash equivalents $ 545.8 Revolving credit availability 199.7 Liquidity $ 745.5 As of December 31, 2023, approximately 69% of the Company’s cash and cash equivalents resided outside the United States.
The amounts involved have been and may continue to be material. 21 AVIENT CORPORATION The following table summarizes our liquidity as of December 31, 2024: (In millions) Cash and cash equivalents $ 544.5 Revolving credit availability 211.4 Liquidity $ 755.9 As of December 31, 2024, 64% of the Company’s cash and cash equivalents resided outside the United States.
Expected sources of cash needed to satisfy cash requirements in 2024 include our cash on hand, cash from operations and available liquidity under our revolving credit facility, if necessary. Expected uses of cash in 2024 include interest payments, cash taxes, dividend payments, share repurchases, environmental remediation costs and capital expenditures.
Expected sources of cash needed to satisfy cash requirements in 2025 include our cash on hand, cash from operations, the receipt of $34.0 million of insurance recoveries, as described in Note 11, Commitments and Contingencies , and available liquidity under our revolving credit facility, if necessary.
Sales and Operating Income 2023 versus 2022 (Dollars in millions) 2023 2022 Change % Change Sales: Color, Additives and Inks $ 2,007.4 $ 2,355.0 $ (347.6) (14.8) % Specialty Engineered Materials 1,138.2 1,044.4 93.8 9.0 % Corporate (2.8) (2.5) (0.3) nm Sales $ 3,142.8 $ 3,396.9 $ (254.1) (7.5) % Operating income: Color, Additives and Inks $ 259.9 $ 301.0 $ (41.1) (13.7) % Specialty Engineered Materials 142.5 140.1 2.4 1.7 % Corporate (205.6) (197.8) (7.8) (3.9) % Operating income $ 196.8 $ 243.3 $ (46.5) (19.1) % nm - not meaningful Color, Additives and Inks Sales decreased $347.6 million, or 14.8%, in 2023 compared to 2022, primarily driven by lower global demand and customer destocking.
Sales and Operating Income 2024 versus 2023 (Dollars in millions) 2024 2023 Change % Change Sales: Color, Additives and Inks $ 2,046.5 $ 2,007.4 $ 39.1 1.9 % Specialty Engineered Materials 1,196.8 1,138.2 58.6 5.1 % Corporate (2.9) (2.8) (0.1) (3.6) % Total sales $ 3,240.4 $ 3,142.8 $ 97.6 3.1 % Operating income: Color, Additives and Inks $ 296.2 $ 259.9 $ 36.3 14.0 % Specialty Engineered Materials 167.2 142.5 24.7 17.3 % Corporate (134.1) (205.6) 71.5 34.8 % Total operating income $ 329.3 $ 196.8 $ 132.5 67.3 % Color, Additives and Inks Sales increased $39.1 million, or 1.9%, in 2024 compared to 2023, primarily driven by increased demand of 2.9%, partially offset by unfavorable foreign currency impacts of 0.9%.
Critical Accounting Policies and Estimates Significant accounting policies are described more fully in Note 1, Description of Business and Summary of Significant Accounting Policies , to the accompanying consolidated financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S.
(3) Purchase obligations are primarily comprised of service agreements related to telecommunication, information technology, utilities and other manufacturing plant services and certain capital commitments. Critical Accounting Policies and Estimates Significant accounting policies are described more fully in Note 1, Description of Business and Summary of Significant Accounting Policies , to the accompanying consolidated financial statements.
These letters of credit are issued by the bank in favor of third parties and are mainly related to required insurance programs. 23 AVIENT CORPORATION Material Cash Requirements We have future obligations under various contracts relating to debt and interest payments, operating leases, pension and post-retirement benefit plans and purchase obligations.
Material Cash Requirements We have future obligations under various contracts relating to debt and interest payments, operating leases, pension and post-retirement benefit plans, purchase obligations and environmental remediation obligations. The following table summarizes our obligations as of December 31, 2024 that are expected to impact liquidity and cash flow in future periods.
We will continue our enterprise-wide Lean Six Sigma program directed at improving margin, profitability and cash flow by applying proven management techniques and strategies to key areas of the business, such as pricing, supply chain and operations management, productivity and quality.
Operationally, we will continue our enterprise-wide Lean Six Sigma program directed at improving margin, profitability and cash flow by applying proven management techniques and strategies to key areas of the business, such as pricing, supply chain and operations management, productivity and quality. 17 AVIENT CORPORATION Subsequent Events In the first quarter of 2025, the Company completed a review of the cloud-based enterprise resource planning system, S/4HANA, including updated project timelines, cost incurred to date, required internal resources and expected costs to complete the initial site implementations, and the evolution of options that could provide better returns for shareholders.
Further, 2023 included $52.1 million of higher environmental remediation costs, while 2022 included $34.4 million of expense associated with the APM Acquisition purchase accounting inventory step-up and $19.2 million of higher restructuring costs. Selling and administrative expense These costs include selling, technology, administrative functions, amortization of intangible assets, corporate and general expenses.
Further, in 2024, Avient recognized a gain from insurance recoveries associated with previously incurred environmental remediation costs of $34.7 million as compared to a gain of $1.7 million in 2023. Selling and administrative expense These costs include selling, technology, administrative functions, amortization of intangible assets, corporate and general expenses.
Operating income at the segment level does not include: corporate general and administrative costs that are not allocated to segments; intersegment sales and profit eliminations; charges related to specific strategic initiatives, such as the consolidation of operations; restructuring activities, including employee separation costs resulting from personnel reduction programs, plant closure and phase-in costs; costs incurred directly in relation to acquisitions or divestitures; integration costs; executive separation agreements; share-based compensation costs; environmental remediation costs, along with related gains from insurance recoveries and other liabilities for facilities no longer owned or closed in prior years; actuarial gains and losses associated with our pension and post-retirement benefit plans; and certain other items that are not included in the measure of segment profit or loss that is reported to and reviewed by our chief operating decision maker.
Operating income at the segment level does not include corporate general and administrative costs that are not allocated to segments, restructuring charges, environmental remediation obligations and associated recoveries, acquisition-related charges, mark-to-market adjustments on pension and other post-retirement obligations, and certain other items that are not included in the measure of segment profit or loss that is reported to and reviewed by our CODM.
Selling and administrative expense in 2023 increased $56.3 million compared to 2022, primarily driven by a full year of APM results and higher restructuring costs of $9.6 million in 2023. 19 AVIENT CORPORATION Interest expense, net Interest expense, net decreased $4.5 million in 2023 as compared to 2022.
Selling and administrative expense in 2024 increased $31.7 million compared to 2023, primarily due to higher employee related costs, partially offset by lower restructuring costs of $9.0 million. 19 AVIENT CORPORATION Interest expense, net Interest expense, net decreased $9.7 million in 2024 as compared to 2023, primarily due to the refinancing of our senior secured term loans in April 2024 and August 2023, which included a partial principal repayment of $102.3 million during the third quarter of 2023.
Investing Activities Net cash used by investing activities during 2023 of $94.2 million primarily reflects the impact of capital expenditures of $119.4 million, which were partially offset by the net proceeds from the sale of the Distribution business of $7.3 million, proceeds from plant closures of $7.6 million and other investing inflows of $10.3 million.
Investing Activities Net cash used by investing activities during 2024 of $120.6 million primarily reflects the impact of capital expenditures.
For additional information regarding our debt, please see Note 6, Financing Arrangements to the accompanying consolidated financial statements . Letters of Credit Our Revolving Credit Facility provides up to $50.0 million for the issuance of letters of credit, $13.3 million of which was used at December 31, 2023.
As of December 31, 2024, we were in compliance with all customary financial and restrictive covenants pertaining to our debt. For additional information regarding our debt, please see Note 5, Financing Arrangements to the accompanying consolidated financial statements .
Corporate Costs increased $7.8 million, or 3.9%, in 2023 compared to 2022, primarily driven by $52.1 million of higher environmental remediation costs in 2023 and $8.1 million of higher mark-to-market costs associated with Avient deferred compensation plans, partially offset by lower acquisition related expense of $47.5 million, which includes $34.4 million of expense associated with the APM inventory step-up, and $9.6 million of lower restructuring costs in 2023. 21 AVIENT CORPORATION Liquidity and Capital Resources Our objective is to finance our business through operating cash flow and an appropriate mix of debt and equity.
Further, lower restructuring costs of $21.9 million in 2024 more than offset higher employee related costs in 2024. Liquidity and Capital Resources Our objective is to finance our business through operating cash flow and an appropriate mix of debt and equity. By laddering the maturity structure, we avoid concentrations of debt maturities, reducing liquidity risk.
Gross Margin Gross margin as a percentage of sales was 28.4% in 2023 as compared to 26.0% in 2022. The gross margin improvement was driven primarily by favorable price and mix, including a full year of APM results in 2023, and raw material deflation.
Gross Margin Gross margin increased to 32.6% from 28.4% in 2024 compared to 2023, primarily driven by the benefits of raw material deflation, mix improvement, lower environmental remediation costs of $34.6 million, and lower restructuring charges of $12.9 million.
Capital expenditures are currently estimated to be approximately $140 million in 2024, primarily to support sales growth, our continued investment in recent acquisitions, including the implementation of a cloud-based ERP system, S/4HANA, and other strategic investments.
Expected uses of cash in 2025 include interest payments, cash taxes, dividend payments, share repurchases, environmental remediation payments and capital expenditures. Capital expenditures are currently estimated to be approximately $120 million in 2025, primarily to support organic sales growth and other strategic investments.
Operating income increased by $2.4 million, or 1.7%, in 2023 compared to 2022, driven primarily by the APM Acquisition, raw material deflation and cost reduction actions, partially offset by lower global demand, customer destocking and unfavorable foreign exchange rates, which had a 1.7% impact.
Operating income increased by $24.7 million, or 17.3%, in 2024 compared to 2023, primarily driven by increased sales, benefits from raw material deflation, which occurred in the first half of 2024, and favorable product mix, partially offset by higher employee related costs and unfavorable foreign currency impacts.
Operating income decreased $41.1 million, or 13.7%, in 2023 compared to 2022, primarily due to lower global demand, customer destocking and unfavorable foreign exchange rates, which had a 1.3% impact, partially offset by the carryforward of price increases, raw material deflation and cost reduction actions. Specialty Engineered Materials Sales increased by $93.8 million, or 9.0%, in 2023 compared to 2022.
Operating income increased $36.3 million, or 14.0%, in 2024 compared to 2023, primarily driven by increased sales and benefits from raw material deflation, which occurred in the first half of 2024, partially offset by higher employee related costs and unfavorable foreign currency impacts.
The carrying value of the trade name is $281.2 million as of December 31, 2023. For additional information about goodwill and intangible assets see Note 4, Goodwill and Intangible Assets .
Based on the results of our impairment analysis, the Company concluded the fair value of its trade names continued to exceed their respective carrying value. For additional information about goodwill and intangible assets see Note 3, Goodwill and Intangible Assets .
Removed
Specialization differentiates us through products, services, technology and solutions that add value. Globalization allows us to service our customers with consistency wherever their operations might be around the world. Operational Excellence empowers us to respond to the voice of the customer while focusing on continuous improvement.
Added
It begins with our purpose: to be an innovator of materials solutions to help our customers succeed, while enabling a sustainable world.
Removed
Commercial Excellence enables us to deliver value to customers by supporting their growth and profitability with superior customer service. As Avient has evolved into a specialty materials company, we’ve continued to refine and increase our commitment to sustainability. Like all that we do, we start by putting our customers first, then look inward to make a difference.
Added
We have a two-pronged strategic approach, where we seek to intersect high-growth markets and secular trends with our technologies to 1) build new platforms of scale by playing bigger and bolder in high growth markets, and 2) catalyze the core of our business, maximizing the impact of what we have.
Removed
Our guiding principle of sustainability is to enable our customers’ innovation and sustainability goals through products and services. Our four cornerstones of People, Products, Planet and Performance guide our investments and actions, and we are making significant contributions in each.
Added
Our strategy utilizes four supporting strategic drivers: Portfolio Prioritization; Amplify Innovation; Digital for Operational Excellence and Growth; and Leadership, Talent and Culture for the Avient of the Future. All of this is underpinned by the established foundational strengths of Avient, which have been built and refined over the 25-year history of the company. We maintain a strong commitment to sustainability.
Removed
In addition, we continue to engage and invest in the Alliance to End Plastic Waste (AEPW). Avient joined the AEPW as a founding member, along with 29 other member companies, in January 2019.
Added
Like all that we do, we start by putting the safety of our employees and needs of our customers first, then look inward to make a difference. We offer a broad portfolio of technologies that are designed to help our customers succeed, while enabling a sustainable world.
Removed
As of December 31, 2023, the AEPW had committed over $1.5 billion to help end plastic waste in the environment through investment in infrastructure, innovation, education, and clean-up activities.
Added
Through our design expertise and materials science, we seek to positively contribute to our customers’ products in many end markets. We have three overarching ways we help our customers meet their sustainability goals: Renew, Reduce, and Preserve.
Removed
Our commitment to AEPW is yet another example of the importance we place on being a global leader in all aspects of how we define sustainability: People, Products, Planet and Performance. 17 AVIENT CORPORATION We have identified four key growth drivers to drive profitable, organic sales growth: sustainable solutions, composites, healthcare and emerging regions.
Added
As a result of this review, the Company determined it would cease the ongoing development of S/4HANA and re-allocate capital to other projects which will support the Company’s new strategy. As a result of this decision, the Company will recognize a non-cash, pre-tax impairment charge of approximately $71 million, associated with capitalized implementation costs.
Removed
We also focus on accelerating the launch of new products and collaborating with our customers to develop new and unique solutions for their benefit while focusing on our four cornerstones of sustainability to ensure the growth we achieve is sustainable for us and our customers.
Added
Increased demand was driven by strength in the consumer, defense, building and construction, packaging and healthcare end markets, partially offset by weakness in the telecommunications and transportation end markets.
Removed
Capital expenditures will be focused primarily to support sales growth, investment in recent acquisitions, and other strategic investments. We also continue to consider acquisitions and other synergy opportunities that complement our core platforms. These actions will enable us to continue to invest in our core capabilities and continue to support growth in key markets and product offerings.
Added
Other income (expense), net Other income (expense), net decreased $4.7 million in 2024 as compared to 2023, primarily associated with $6.3 million in amortization of prior service credits associated with the phase out of certain post-employment benefits in 2023.
Removed
Examples of how our strategy supports these trends can be found in numerous initiatives: active participation in the medical device market, leveraging our global footprint to deliver consistent solutions globally, light weighting and metal replacement and development of solutions that respond to ever-changing market needs by offering alternatives to traditional materials.
Added
This higher rate was primarily driven by U.S. permanent items of 2.1%, international rate differential of 1.7% and tax associated with foreign income repatriation of 1.6%. These items were partially offset by credits associated with research and development of 1.7% and changes in uncertain tax position which resulted in a net benefit of 1.1%.
Removed
Recent Developments APM Acquisition On September 1, 2022, the Company completed the acquisition of the DSM Protective Materials business, including the Dyneema® brand, the World's Strongest Fiber™. The ultra-light specialty fiber is used in demanding applications such as ballistic personal protection, marine and sustainable infrastructure, renewable energy, industrial protection and outdoor sports.
Added
The 2023 consolidated effective income tax rate from continuing operations was 12.6%, which was lower than the U.S. federal rate of 21%. This lower rate was primarily driven by the recognition of tax benefits of 7.5% associated with tax impairments of investments in affiliates, driven in part from European restructuring actions.
Removed
The acquired business is collectively referred to as APM, and the acquisition is referred to as the APM Acquisition. The APM Acquisition enhances Avient's materials offerings of composites and engineered fibers. Total consideration paid by the Company was $1.4 billion, net of cash acquired.
Added
Increased demand was driven by strength in the packaging, consumer, healthcare and building and construction end markets, partially offset by weakness in the transportation end market.
Removed
Distribution business sale On November 1, 2022, Avient sold its Distribution business to an affiliate of H.I.G. Capital for $950.0 million in cash, subject to a customary working capital adjustment. Total proceeds were $935.5 million, of which $7.3 million was received in the year ended December 31, 2023.
Added
Specialty Engineered Materials Sales increased by $58.6 million, or 5.1%, in 2024 compared to 2023, primarily driven by increased demand of 6.1%, partially offset by an unfavorable foreign currency impact of 0.7%. Increased demand was driven by strength in the defense, building and construction, consumer and healthcare end markets, partially offset by weakness in the telecommunications end market.
Removed
The APM Acquisition, which began to be reflected in results as of September 1, 2022, increased sales by 7.4%, which was more than offset by the impacts of lower global demand and customer destocking. In addition, unfavorable foreign exchange rates had a 0.8% impact.
Added
Corporate Costs decreased $71.5 million, or 34.8%, in 2024 compared to 2023, primarily driven by $34.6 million of lower environmental remediation costs in 2024 compared to 2023, while gains from insurance recoveries associated with previously incurred environmental remediation costs were $33.0 million higher in 2024 compared to 2023.
Removed
Higher interest expense related to new debt incurred to finance the APM Acquisition and the impact of higher interest rates on our variable term debt was partially offset by $15.8 million of higher interest income from cash equivalents and cross-currency swaps.
Added
This was partially offset by an increase in working capital of $28.6 million as compared to a decrease of $40.7 million in 2023, a $15.4 million increase in environmental remediation payments, and $21.1 million of higher benefit payments associated with executive retirements.
Removed
Additional reductions resulted from $10.0 million of committed financing costs incurred in 2022 associated with the APM Acquisition along with a $13.7 million reduction in other debt financing costs. Other income (expense), net Other income (expense), net resulted in income in 2023 primarily related to a $32.3 million year-over-year change in the mark-to-market expense associated with pension and post-retirement plans.
Added
The maturity date and other terms and conditions are substantially the same as the terms and conditions under the credit agreement immediately prior to the Term Loan Amendment. On September 19, 2024, the Company completed the issuance of $650.0 million aggregate principal amount of 6.250% Senior Notes which will mature on November 1, 2031 (the 2031 Notes).
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
4 edited+0 added−0 removed4 unchanged
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
4 edited+0 added−0 removed4 unchanged
2023 filing
2024 filing
Interest rate exposure — Interest on our Revolving Credit Facility and senior secured term loan is based upon a Prime rate or SOFR, plus a margin.
Interest rate exposure — Interest on our Revolving Credit Facility and senior secured term loan is based upon a Base Rate or Adjusted Term SOFR, plus a margin.
There would be no material impact on our interest expense or cash flows from either a 10% increase or decrease in market rates of interest on our outstanding variable rate debt as of December 31, 2023.
There would be no material impact on our interest expense or cash flows from either a 100 basis point increase or decrease in market rates of interest on our outstanding variable rate debt as of December 31, 2024.
The resulting translation adjustments are recorded as a component of Accumulated other comprehensive (loss) income in the Shareholders’ equity section of the accompanying Consolidated Balance Sheets . Net sales and expenses in our foreign operations’ foreign currencies are translated into varying amounts of U.S. dollars depending upon whether the U.S. dollar weakens or strengthens against other currencies.
Net sales and expenses in our foreign operations’ foreign currencies are translated into varying amounts of U.S. dollars depending upon whether the U.S. dollar weakens or strengthens against other currencies. Therefore, changes in exchange rates may either positively or negatively affect our net sales and expenses from foreign operations as expressed in U.S. dollars. 28 AVIENT CORPORATION
Therefore, changes in exchange rates may either positively or negatively affect our net sales and expenses from foreign operations as expressed in U.S. dollars. To mitigate a portion of this risk, we may enter into cross currency swaps. Gains and losses on these contracts generally offset gains and loss on the euro investment in our foreign entities. 28 AVIENT CORPORATION
The resulting translation adjustments are recorded as a component of Accumulated other comprehensive income (loss) in the Shareholders’ equity section of the accompanying Consolidated Balance Sheets . To mitigate a portion of this risk, we may enter into cross-currency swaps. Gains and losses on these contracts generally offset gains and losses on the Euro denominated investment in our foreign entities.