ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Our Business
We are a premier provider of specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world. Our products include specialty engineered materials, advanced composites, color and additive systems and polymer distribution. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants, and fluoropolymer and silicone colorants. Headquartered in Avon Lake, Ohio, we have employees at sales, manufacturing and distribution facilities across the globe. 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. When used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation, formerly known as PolyOne Corporation, and its consolidated subsidiaries.
Highlights and Executive Summary
A summary of Avient’s sales, operating income, net income and net income attributable to Avient common shareholders follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Sales
|
$
|
1,219.8
|
|
|
$
|
924.5
|
|
|
$
|
3,617.3
|
|
|
$
|
2,245.1
|
|
Operating income
|
78.7
|
|
|
33.5
|
|
|
307.2
|
|
|
124.3
|
|
Net income from continuing operations
|
52.6
|
|
|
2.6
|
|
|
201.7
|
|
|
59.1
|
|
Income (loss) from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
Net income
|
$
|
52.6
|
|
|
$
|
2.6
|
|
|
$
|
201.7
|
|
|
$
|
58.6
|
|
|
|
|
|
|
|
|
|
Net income attributable to Avient common shareholders
|
$
|
52.9
|
|
|
$
|
1.7
|
|
|
$
|
201.0
|
|
|
$
|
57.3
|
|
Trends and Developments
COVID-19
We have continued to closely monitor the impact of the COVID-19 pandemic on all aspects of our business, including how it has impacted our employees, customers, supply chain and distribution network. While our business was adversely affected by the COVID-19 pandemic in 2020, we have seen recovery through the third quarter of 2021. The scope and duration of the pandemic continues to be uncertain, and evolving factors such as the level and timing of vaccine distribution across the world and the extent of any resurgences of the virus or emergence of new variants will impact the stability of the economic recovery and growth. The extent to which our operations may be adversely impacted by the COVID-19 pandemic will depend largely on these future developments, which are highly uncertain and cannot be accurately predicted. For further information regarding the impact that the COVID-19 pandemic could have on our business, see Part I – Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2020.
Clariant Color Acquisition
On July 1, 2020, the Company completed the Clariant Color Acquisition. The Clariant Color Acquisition increased the Company's scale, product depth and geographic reach in its Color, Additives and Inks segment. Clariant Color has leading portfolios of solid and liquid systems that include sustainable solutions for alternative energy, and reduced material requirements for packaging and lightweighting.
Total consideration paid by the Company to complete the Clariant Color Acquisition was $1.4 billion, net of cash and debt acquired. To finance the purchase of Clariant Color, the Company used $496.1 million in net proceeds from the issuance of common shares in an underwritten public offering completed in February 2020 and $640.5 million in net proceeds from a senior unsecured notes offering completed in May 2020, and funded the balance using the net proceeds of the October 2019 sale of PP&S. We finalized the purchase accounting for the Clariant Color Acquisition as of June 30, 2021. For details related to the effects of adjustments recognized in the current reporting period, refer to Note 2, Business Combinations to the accompanying condensed consolidated financial statements.
Magna Colours Acquisition
On July 1, 2021, the Company completed its acquisition of Magna Colours, a market leader in sustainable, water-based inks technology for the textile screen printing industry, for the purchase price of $47.6 million, net of cash acquired. The results of the Magna Colours business are reported in the Color, Additives and Inks segment. The preliminary purchase price allocation resulted in intangible assets of $27.5 million and goodwill of $22.2 million, partially offset by net liabilities assumed. Goodwill is not deductible for tax purposes. The intangible assets that have been acquired are being amortized over a period of 10 to 20 years.
Results of Operations — The three and nine months ended September 30, 2021 compared to three and nine months ended September 30, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Variances — Favorable (Unfavorable)
|
|
Nine Months Ended September 30,
|
|
Variances —
Favorable (Unfavorable)
|
(Dollars in millions, except per share data)
|
2021
|
|
2020
|
|
Change
|
|
%
Change
|
|
2021
|
|
2020
|
|
Change
|
|
%
Change
|
Sales
|
$
|
1,219.8
|
|
|
$
|
924.5
|
|
|
$
|
295.3
|
|
|
32
|
%
|
|
$
|
3,617.3
|
|
|
$
|
2,245.1
|
|
|
$
|
1,372.2
|
|
|
61
|
%
|
Cost of sales
|
964.4
|
|
|
714.3
|
|
|
(250.1)
|
|
|
(35)
|
%
|
|
2,770.8
|
|
|
1,713.7
|
|
|
(1,057.1)
|
|
|
(62)
|
%
|
Gross margin
|
255.4
|
|
|
210.2
|
|
|
45.2
|
|
|
22
|
%
|
|
846.5
|
|
|
531.4
|
|
|
315.1
|
|
|
59
|
%
|
Selling and administrative expense
|
176.7
|
|
|
176.7
|
|
|
—
|
|
|
—
|
%
|
|
539.3
|
|
|
407.1
|
|
|
(132.2)
|
|
|
(32)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
78.7
|
|
|
33.5
|
|
|
45.2
|
|
|
135
|
%
|
|
307.2
|
|
|
124.3
|
|
|
182.9
|
|
|
147
|
%
|
Interest expense, net
|
(19.0)
|
|
|
(29.7)
|
|
|
10.7
|
|
|
36
|
%
|
|
(57.8)
|
|
|
(55.3)
|
|
|
(2.5)
|
|
|
(5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
1.4
|
|
|
1.5
|
|
|
(0.1)
|
|
|
nm
|
|
4.1
|
|
|
12.6
|
|
|
(8.5)
|
|
|
nm
|
Income from continuing operations before income taxes
|
61.1
|
|
|
5.3
|
|
|
55.8
|
|
|
1053
|
%
|
|
253.5
|
|
|
81.6
|
|
|
171.9
|
|
|
211
|
%
|
Income tax expense
|
(8.5)
|
|
|
(2.7)
|
|
|
(5.8)
|
|
|
(215)
|
%
|
|
(51.8)
|
|
|
(22.5)
|
|
|
(29.3)
|
|
|
(130)
|
%
|
Net income from continuing operations
|
52.6
|
|
|
2.6
|
|
|
50.0
|
|
|
1923
|
%
|
|
201.7
|
|
|
59.1
|
|
|
142.6
|
|
|
241
|
%
|
Loss from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
nm
|
|
—
|
|
|
(0.5)
|
|
|
0.5
|
|
|
nm
|
Net income
|
52.6
|
|
|
2.6
|
|
|
50.0
|
|
|
1923
|
%
|
|
201.7
|
|
|
58.6
|
|
|
143.1
|
|
|
244
|
%
|
Net income attributable to noncontrolling interests
|
0.3
|
|
|
(0.9)
|
|
|
1.2
|
|
|
nm
|
|
(0.7)
|
|
|
(1.3)
|
|
|
0.6
|
|
|
nm
|
Net income attributable to Avient common shareholders
|
$
|
52.9
|
|
|
$
|
1.7
|
|
|
$
|
51.2
|
|
|
3012
|
%
|
|
$
|
201.0
|
|
|
$
|
57.3
|
|
|
$
|
143.7
|
|
|
251
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Avient common shareholders - Basic:
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.58
|
|
|
$
|
0.02
|
|
|
|
|
|
|
$
|
2.20
|
|
|
$
|
0.64
|
|
|
|
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
Total
|
$
|
0.58
|
|
|
$
|
0.02
|
|
|
|
|
|
|
$
|
2.20
|
|
|
$
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable to Avient common shareholders - Diluted:
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.57
|
|
|
$
|
0.02
|
|
|
|
|
|
|
$
|
2.18
|
|
|
$
|
0.64
|
|
|
|
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
(0.01)
|
|
|
|
|
|
Total
|
$
|
0.57
|
|
|
$
|
0.02
|
|
|
|
|
|
|
$
|
2.18
|
|
|
$
|
0.63
|
|
|
|
|
|
nm - not meaningful
Sales
Sales increased $295.3 million in the three months ended September 30, 2021 compared to the three months ended September 30, 2020 as a result of the growth in nearly all end markets and regions and price increases associated with raw material inflation.
Sales increased $1,372.2 million in the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 as a result of the Clariant Color Acquisition, as well as growth in nearly all end markets and regions and price increases associated with raw material inflation.
Cost of sales
As a percent of sales, cost of sales increased from 77.3% to 79.1% in the three months ended September 30, 2020 to September 30, 2021, respectively, and 76.3% to 76.6% in the nine months ended September 30, 2020 to September 30, 2021, respectively, as a result of rising raw material costs.
Selling and administrative expense
Selling and administrative expense in the three months ended September 30, 2021 was comparable to the three months ended September 30, 2020. Selling and administrative expense increased $132.2 million during the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020, driven primarily by the Clariant Color Acquisition.
Interest expense, net
Interest expense, net decreased $10.7 million in the three months ended September 30, 2021 compared to the three months ended September 30, 2020 as we incurred committed financing fees in 2020 related to the Clariant Color Acquisition. Interest expense, net increased $2.5 million in the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020, due to higher interest expense related to our senior unsecured notes offering completed in May 2020, offset by reduction of committed financing associated with the Clariant Color Acquisition.
Income taxes
During the three and nine months ended September 30, 2021, the Company’s effective tax rate was 14.1% and 20.5%, respectively, compared to 51.9% and 27.6% for the three and nine months ended September 30, 2020, respectively. The income tax rate decrease is primarily due to higher U.S. FDII tax benefits, lower tax rate impact on withholding tax associated with the repatriation of certain current and prior year foreign earnings, lower valuation allowance expense and favorable prior year U.S. return-to-provision adjustments. Partially offsetting these favorable effects was a more favorable foreign effective tax rate in 2020 compared to 2021 and a higher impact of state income taxes in 2021.
SEGMENT INFORMATION
Avient has three reportable segments: (1) Color, Additives and Inks; (2) Specialty Engineered Materials; and (3) Distribution. Operating income is the primary measure that is reported to our CODM for purposes of allocating resources to the segments and assessing their performance.
Sales and Operating Income — The three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Variances — Favorable
(Unfavorable)
|
|
Nine Months Ended September 30,
|
|
Variances — Favorable
(Unfavorable)
|
(Dollars in millions)
|
2021
|
|
2020
|
|
Change
|
|
% Change
|
|
2021
|
|
2020
|
|
Change
|
|
% Change
|
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Color, Additives and Inks
|
$
|
586.6
|
|
|
$
|
493.8
|
|
|
$
|
92.8
|
|
|
19
|
%
|
|
$
|
1,820.3
|
|
|
$
|
977.1
|
|
|
$
|
843.2
|
|
|
86
|
%
|
Specialty Engineered Materials
|
233.6
|
|
|
174.1
|
|
|
59.5
|
|
|
34
|
%
|
|
690.7
|
|
|
518.2
|
|
|
172.5
|
|
|
33
|
%
|
Distribution
|
438.8
|
|
|
276.9
|
|
|
161.9
|
|
|
58
|
%
|
|
1,205.9
|
|
|
805.2
|
|
|
400.7
|
|
|
50
|
%
|
Corporate and eliminations
|
(39.2)
|
|
|
(20.3)
|
|
|
(18.9)
|
|
|
(93)
|
%
|
|
(99.6)
|
|
|
(55.4)
|
|
|
(44.2)
|
|
|
(80)
|
%
|
Total Sales
|
$
|
1,219.8
|
|
|
$
|
924.5
|
|
|
$
|
295.3
|
|
|
32
|
%
|
|
$
|
3,617.3
|
|
|
$
|
2,245.1
|
|
|
$
|
1,372.2
|
|
|
61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Color, Additives and Inks
|
$
|
66.8
|
|
|
$
|
50.5
|
|
|
$
|
16.3
|
|
|
32
|
%
|
|
$
|
241.9
|
|
|
$
|
123.3
|
|
|
$
|
118.6
|
|
|
96
|
%
|
Specialty Engineered Materials
|
31.7
|
|
|
24.7
|
|
|
7.0
|
|
|
28
|
%
|
|
103.2
|
|
|
64.0
|
|
|
39.2
|
|
|
61
|
%
|
Distribution
|
23.8
|
|
|
17.5
|
|
|
6.3
|
|
|
36
|
%
|
|
71.5
|
|
|
51.5
|
|
|
20.0
|
|
|
39
|
%
|
Corporate and eliminations
|
(43.6)
|
|
|
(59.2)
|
|
|
15.6
|
|
|
26
|
%
|
|
(109.4)
|
|
|
(114.5)
|
|
|
5.1
|
|
|
4
|
%
|
Total Operating Income
|
$
|
78.7
|
|
|
$
|
33.5
|
|
|
$
|
45.2
|
|
|
135
|
%
|
|
$
|
307.2
|
|
|
$
|
124.3
|
|
|
$
|
182.9
|
|
|
147
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as a percentage of sales:
|
|
|
|
|
|
|
|
|
|
|
Color, Additives and Inks
|
11.4
|
%
|
|
10.2
|
%
|
|
1.2
|
|
|
% points
|
|
13.3
|
%
|
|
12.6
|
%
|
|
0.7
|
|
|
% points
|
Specialty Engineered Materials
|
13.6
|
%
|
|
14.2
|
%
|
|
(0.6)
|
|
|
% points
|
|
14.9
|
%
|
|
12.4
|
%
|
|
2.5
|
|
|
% points
|
Distribution
|
5.4
|
%
|
|
6.3
|
%
|
|
(0.9)
|
|
|
% points
|
|
5.9
|
%
|
|
6.4
|
%
|
|
(0.5)
|
|
|
% points
|
Total
|
6.5
|
%
|
|
3.6
|
%
|
|
2.9
|
|
|
% points
|
|
8.5
|
%
|
|
5.5
|
%
|
|
3.0
|
|
|
% points
|
Color, Additives and Inks
Sales increased $92.8 million in the three months ended September 30, 2021 compared to the three months ended September 30, 2020 due to growth in nearly all end markets and regions and price increases associated with raw material inflation. Sales increased $843.2 million in the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 primarily due to the Clariant Color Acquisition, as well as growth in nearly all end markets and regions and price increases associated with raw material inflation.
On a pro forma basis to include Clariant Color in all periods, sales increased by $302.7 million, or 20%, in the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 as a result of growth in nearly all end markets and regions, particularly consumer, transportation, and industrial, as well as price increases. Favorable foreign exchange also contributed 4%.
Operating income increased $16.3 million in the three months ended September 30, 2021 compared to the three months ended September 30, 2020 due to growth in nearly all end markets and regions. Operating income increased $118.6 million in the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020 primarily due to the Clariant Color Acquisition, as well as growth in nearly all end markets and price increases associated with raw material inflation.
On a pro forma basis to include Clariant Color in all periods, operating income increased by 43% in the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, respectively, as a result of the sales growth discussed above and capture of integration synergies, partially offset by raw material and conversion cost inflation.
Specialty Engineered Materials
Sales increased $59.5 million and $172.5 million in the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020, respectively, largely driven by high demand for composite materials and growth in many end markets.
Operating income increased $7.0 million and $39.2 million in the three and nine months ended September 30, 2021 as compared to the three and nine months ended September 30, 2020, respectively, due to increased sales and continued growth of higher margin specialty and composite solutions.
Distribution
Sales increased $161.9 million and $400.7 million in the three and nine months ended September 30, 2021, respectively, as compared to the three and nine months ended September 30, 2020, driven by increased demand as well as higher average selling prices.
Operating income increased $6.3 million and $20.0 million in the three and nine months ended September 30, 2021 as compared to the three and nine months ended September 30, 2020, respectively as a result of the sales growth discussed above, partially offset by raw material cost inflation.
Corporate and Eliminations
Costs declined $15.6 million, or 26%, in the three months ended September 30, 2021 as compared to the three months ended September 30, 2020 and $5.1 million, or 4%, in the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020 due to lower environmental remediation costs and lower acquisition related expense.
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. 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. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved have been and may continue to be material.
The following table summarizes our liquidity as of September 30, 2021 and December 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
As of September 30, 2021
|
|
As of December 31, 2020
|
Cash and cash equivalents
|
$
|
545.2
|
|
|
$
|
649.5
|
|
Revolving credit availability
|
407.0
|
|
|
279.9
|
|
Liquidity
|
$
|
952.2
|
|
|
$
|
929.4
|
|
As of September 30, 2021, approximately 72% of the Company’s cash and cash equivalents resided outside the United States.
Expected sources of cash needed to satisfy cash requirements for the remainder 2021 include our cash on hand, cash from operations and available liquidity under our revolving credit facility, if needed. Expected uses of cash for the remainder of 2021 include integration costs related to the Clariant Color Acquisition, interest payments, cash taxes, dividend payments, share repurchases, environmental remediation costs, capital expenditures and debt repayment.
Cash Flows
The following describes the significant components of cash flows from operating, investing and financing activities for the nine months ended September 30, 2021 and 2020.
Operating Activities — In the nine months ended September 30, 2021, net cash provided by operating activities was $110.0 million as compared to net cash provided by operating activities of $68.7 million for the nine months ended September 30, 2020, driven by increased earnings in 2021 and no taxes paid associated with the gain on divestiture and no earnout liabilities paid, partially offset by increased working capital requirements to meet demand.
Investing Activities — Net cash used by investing activities during the nine months ended September 30, 2021 of $112.3 million primarily reflects capital expenditures of $62.7 million and $47.6 million related to the Magna Colours acquisition.
Net cash used by investing activities during the nine months ended September 30, 2020 of $1,369.0 million primarily reflects $1,342.7 million related to the Clariant Color Acquisition, and capital expenditures of $38.6 million.
Financing Activities — Net cash used by financing activities for the nine months ended September 30, 2021 of $91.5 million primarily reflects $58.2 million of dividends paid, repayment of debt of $16.5 million, repurchases of our outstanding common shares of $4.2 million, and the payment of withholding tax on share awards of $9.1 million.
Net cash provided by financing activities for the nine months ended September 30, 2020 of $1,011.5 million primarily reflects $496.1 million of net proceeds received from the issuance of common shares in an underwritten public offering that we completed in February 2020, and $640.5 million of net proceeds from the senior secured notes offering completed in May 2020, offset by $52.8 million of dividends paid, repurchases of our outstanding common shares of $13.6 million, and the payment of acquisition date earnout liabilities of $50.8 million.
Debt
As of September 30, 2021, our principal amount of debt totaled $1,875.3 million. Aggregate maturities of the principal amount of debt for the current year, next four years and thereafter, are as follows:
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
2021
|
|
$
|
2.0
|
|
2022
|
|
8.5
|
|
2023
|
|
608.6
|
|
2024
|
|
8.6
|
|
2025
|
|
658.7
|
|
Thereafter
|
|
588.9
|
|
Aggregate maturities
|
|
$
|
1,875.3
|
|
As of September 30, 2021, we were in compliance with all financial and restrictive covenants pertaining to our debt. For additional information regarding our debt, please see Note 8, Financing Arrangements to the accompanying condensed consolidated financial statements.
Derivatives and Hedging
We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures we may enter into various derivative transactions. For additional information regarding our derivative instruments, please see Note 11, Derivatives and Hedging to the accompanying condensed consolidated financial statements.
Contractual Obligations
We have future obligations under various contracts relating to debt and interest payments, operating leases, pension and post-retirement benefit plans and purchase obligations. During the nine months ended September 30, 2021, there were no material changes to these obligations as reported in our Annual Report on Form 10-K for the year ended December 31, 2020.
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
In this Quarterly Report on Form 10-Q, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historic or current facts. They use words such as "will," “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. In particular, these include statements relating to future actions; prospective changes in raw material costs, product pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of contingencies such as legal proceedings and environmental liabilities; and financial results. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
•disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future;
•the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
•the current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows, including without limitation, any supply chain and logistics issues;
•changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business;
•fluctuations in raw material prices, quality and supply, and in energy prices and supply;
•production outages or material costs associated with scheduled or unscheduled maintenance programs;
•unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
•an inability to achieve the anticipated financial benefit from initiatives related to acquisition and integration working capital reductions, cost reductions and employee productivity goals;
•our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
•information systems failures and cyberattacks;
•our ability to consummate and successfully integrate acquisitions;
•amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and
•other factors described in our Annual Report on Form 10-K for the year ended December 31, 2020 under Item 1A, “Risk Factors.”
We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions. Achievement of future results is subject to risks, uncertainties and assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Investors should bear this in mind as they consider forward-looking statements. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law. You are advised, however, to consult any further disclosures we make on related subjects in our reports on Forms 10-Q, 8-K and 10-K filed with the Securities and Exchange Commission. You should understand that it is not possible to predict or identify all risk factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.