PART I — FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Avient Corporation's unaudited condensed consolidated financial statements, including key statements and detailed explanatory notes [Condensed Consolidated Statements of Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) **Key Financial Performance (in millions):** | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Sales | $823.3 | $818.0 | $2,606.5 | $2,508.5 | | Operating income | $40.6 | $52.8 | $242.9 | $229.6 | | Net (loss) income attributable to Avient common shareholders | $(10.3) | $52.9 | $158.6 | $201.0 | | (Loss) earnings per share attributable to Avient common shareholders - Basic (Total) | $(0.11) | $0.58 | $1.74 | $2.20 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) **Comprehensive Income (Loss) (in millions):** | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :----------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net (loss) income | $(10.7) | $52.6 | $158.5 | $201.7 | | Translation adjustments and related hedging instruments | $(61.1) | $(29.4) | $(120.4) | $(70.9) | | Total other comprehensive loss | $(60.9) | $(28.7) | $(118.1) | $(68.7) | | Total comprehensive (loss) income | $(71.6) | $23.9 | $40.4 | $133.0 | | Comprehensive (loss) income attributable to Avient common shareholders | $(71.2) | $24.2 | $40.5 | $132.3 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) **Balance Sheet Highlights (in millions):** | Metric | September 30, 2022 | December 31, 2021 | | :--------------------------------- | :----------------- | :------------------ | | Total current assets | $1,988.3 | $1,827.0 | | Property, net | $965.4 | $672.3 | | Goodwill | $1,491.0 | $1,284.8 | | Intangible assets, net | $1,525.7 | $925.2 | | Total assets | $6,307.1 | $4,997.2 | | Total current liabilities | $1,555.6 | $940.7 | | Total non-current liabilities | $3,015.4 | $2,266.0 | | Total liabilities and equity | $6,307.1 | $4,997.2 | | Avient shareholders' equity | $1,720.4 | $1,774.7 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) **Cash Flow Summary (in millions):** | Activity | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $223.9 | $110.0 | | Net cash used by investing activities | $(1,387.9) | $(112.3) | | Net cash provided (used) by financing activities | $1,138.1 | $(91.5) | | Decrease in cash and cash equivalents | $(56.8) | $(104.3) | | Cash and cash equivalents at end of period | $544.4 | $545.2 | - Net cash used by investing activities significantly increased in 2022, primarily due to **$1,426.1 million for business acquisitions**[11](index=11&type=chunk) - Net cash provided by financing activities in 2022 was largely driven by **$1,300.0 million in debt proceeds**[11](index=11&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) **Changes in Avient Shareholders' Equity (in millions):** | Item | Balance at Jan 1, 2022 | Balance at Sep 30, 2022 | | :------------------------------------ | :--------------------- | :---------------------- | | Total Avient shareholders' equity | $1,774.7 | $1,720.4 | | Net income (loss) for Q3 2022 | N/A | $(10.3) | | Other comprehensive loss for Q3 2022 | N/A | $(60.9) | | Cash dividends declared for Q3 2022 | N/A | $(21.6) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1 — BASIS OF PRESENTATION](index=9&type=section&id=Note%201%20%E2%80%94%20BASIS%20OF%20PRESENTATION) - The unaudited condensed consolidated financial statements are prepared in accordance with Form 10-Q instructions and include all normal, recurring, and necessary adjustments[18](index=18&type=chunk) - Historical information has been retrospectively adjusted to reflect the classification of discontinued operations[18](index=18&type=chunk) - The Company is evaluating ASU 2020-04 (Reference Rate Reform) but does not expect any material impact on its consolidated financial statements[19](index=19&type=chunk) [Note 2 — BUSINESS COMBINATIONS](index=9&type=section&id=Note%202%20%E2%80%94%20BUSINESS%20COMBINATIONS) - On September 1, 2022, Avient completed the acquisition of DSM Protective Materials (APM), including the Dyneema® brand, for **$1.4 billion**, net of cash acquired, enhancing Avient's material offerings of composites and engineered fibers[20](index=20&type=chunk)[65](index=65&type=chunk) - The APM acquisition was financed by **$575.0 million** from a new Senior Secured Term Loan due 2029 and **$725.0 million** aggregate principal of 7.125% Senior Notes due 2030[20](index=20&type=chunk)[65](index=65&type=chunk) **Preliminary Purchase Price Allocation for APM Acquisition (September 1, 2022, in millions):** | Asset/Liability | Amount | | :-------------------------- | :----- | | Cash and cash equivalents | $50.7 | | Accounts receivable | $52.2 | | Inventories | $136.2 | | Property | $361.9 | | Intangible assets (total) | $728.7 | | Goodwill | $277.1 | | Total purchase price consideration | $1,476.8 | - Sales and loss from continuing operations of APM since the acquisition date (September 1, 2022) were **$32.3 million** and **$7.0 million**, respectively, with the loss including **$10.6 million** from inventory step-up[21](index=21&type=chunk) - On July 1, 2021, the Company acquired Magna Colours Ltd. for **$47.6 million**, net of cash acquired, adding sustainable, water-based inks technology to the Color, Additives and Inks segment[24](index=24&type=chunk)[67](index=67&type=chunk) [Note 3 — DISCONTINUED OPERATIONS](index=11&type=section&id=Note%203%20%E2%80%94%20DISCONTINUED%20OPERATIONS) - On August 11, 2022, Avient entered into an agreement to sell its Distribution business for **$950.0 million** in cash to an affiliate of H.I.G. Capital[25](index=25&type=chunk)[66](index=66&type=chunk) - The Distribution business's assets and liabilities are classified as held-for-sale, and its operating results are presented as discontinued operations for all periods presented[25](index=25&type=chunk) **Financial Performance of Discontinued Operations (in millions):** | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :-------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Sales | $398.6 | $401.8 | $1,211.6 | $1,108.9 | | Income before income taxes | $24.1 | $25.7 | $79.8 | $77.4 | | Income from discontinued operations, net of income taxes | $17.1 | $19.2 | $58.8 | $57.7 | **Assets and Liabilities Held-for-Sale (in millions):** | Category | September 30, 2022 | December 31, 2021 | | :------------------------ | :----------------- | :------------------ | | Total assets held-for-sale | $367.8 | $382.2 | | Total liabilities held-for-sale | $170.3 | $154.4 | [Note 4 — GOODWILL AND INTANGIBLE ASSETS](index=13&type=section&id=Note%204%20%E2%80%94%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) **Goodwill by Segment (in millions):** | Segment | Balance at Dec 31, 2021 | Acquisition of businesses | Currency translation | Balance at Sep 30, 2022 | | :----------------------------- | :---------------------- | :------------------------ | :------------------- | :---------------------- | | Specialty Engineered Materials | $236.3 | $277.1 | $(13.1) | $500.3 | | Color, Additives and Inks | $1,048.5 | — | $(57.8) | $990.7 | | Total | $1,284.8 | $277.1 | $(70.9) | $1,491.0 | **Intangible Assets, Net (September 30, 2022, in millions):** | Category | Acquisition Cost | Accumulated Amortization | Currency Translation | Net | | :---------------------------- | :--------------- | :----------------------- | :------------------- | :------ | | Customer relationships | $705.9 | $(156.0) | $(25.4) | $524.5 | | Patents, technology and other | $841.8 | $(158.2) | $(42.1) | $641.5 | | Indefinite-lived trade names | $368.0 | — | $(8.3) | $359.7 | | Total | $1,915.7 | $(314.2) | $(75.8) | $1,525.7 | - Goodwill increased by **$277.1 million** primarily due to the APM acquisition, recorded in the Specialty Engineered Materials segment[21](index=21&type=chunk)[31](index=31&type=chunk) [Note 5 — INVENTORIES, NET](index=13&type=section&id=Note%205%20%E2%80%94%20INVENTORIES,%20NET) **Components of Inventories, net (in millions):** | Category | As of September 30, 2022 | As of December 31, 2021 | | :------------------------- | :----------------------- | :---------------------- | | Finished products | $197.8 | $90.0 | | Work in process | $25.6 | $21.2 | | Raw materials and supplies | $218.1 | $194.6 | | Inventories, net | $441.5 | $305.8 | - Inventories, net increased by **$135.7 million** from December 31, 2021, to September 30, 2022, with finished products showing the largest increase[34](index=34&type=chunk) [Note 6 — PROPERTY, NET](index=13&type=section&id=Note%206%20%E2%80%94%20PROPERTY,%20NET) **Components of Property, net (in millions):** | Category | As of September 30, 2022 | As of December 31, 2021 | | :-------------------------- | :----------------------- | :---------------------- | | Land and land improvements | $80.9 | $91.5 | | Buildings | $382.2 | $348.1 | | Machinery and equipment | $1,272.8 | $965.4 | | Property, gross | $1,735.9 | $1,405.0 | | Less accumulated depreciation | $(770.5) | $(732.7) | | Property, net | $965.4 | $672.3 | - Property, net increased by **$293.1 million** from December 31, 2021, to September 30, 2022, primarily driven by an increase in machinery and equipment[35](index=35&type=chunk) [Note 7 — INCOME TAXES](index=14&type=section&id=Note%207%20%E2%80%94%20INCOME%20TAXES) - For the three months ended September 30, 2022, the effective tax rate benefit from continuing operations was **4.1%**, below the U.S. federal statutory rate of **21.0%**, due to a pretax loss, state income tax benefits, and U.S. R&D tax credit, partially offset by foreign withholding tax liabilities and GILTI tax[37](index=37&type=chunk) - For the nine months ended September 30, 2022, the effective tax rate from continuing operations was **29.4%**, above the U.S. federal statutory rate of **21.0%**, primarily due to foreign withholding tax liabilities, GILTI tax, and increased valuation allowances[37](index=37&type=chunk) [Note 8 — FINANCING ARRANGEMENTS](index=14&type=section&id=Note%208%20%E2%80%94%20FINANCING%20ARRANGEMENTS) **Debt Instruments (September 30, 2022, in millions):** | Instrument | Principal Amount | Net Debt | Weighted average interest rate | | :------------------------------------ | :--------------- | :------- | :----------------------------- | | Senior secured term loan due 2026 | $606.6 | $601.7 | 2.95% | | Senior secured term loan due 2029 | $575.0 | $546.8 | 5.51% | | 5.25% senior notes due 2023 | $600.0 | $599.5 | 5.25% | | 5.75% senior notes due 2025 | $650.0 | $644.6 | 5.75% | | 7.125% senior notes due 2030 | $725.0 | $714.4 | 7.125% | | Total Debt | $3,166.4 | $3,116.8 | N/A | - The Company issued **$725 million** aggregate principal amount of 7.125% Senior Notes due 2030 on August 10, 2022[39](index=39&type=chunk) - On August 29, 2022, the Company incurred a new tranche of Senior Secured Term Loan due 2029 in an aggregate principal amount of **$575 million**[40](index=40&type=chunk) - Net proceeds from the 2030 Notes and 2029 Term Loan were used to finance a portion of the APM Acquisition[41](index=41&type=chunk) - As of September 30, 2022, the Company had no borrowings outstanding under its senior secured revolving credit facility, with **$485.1 million** remaining availability, and was in compliance with all debt covenants[42](index=42&type=chunk) [Note 9 — SEGMENT INFORMATION](index=15&type=section&id=Note%209%20%E2%80%94%20SEGMENT%20INFORMATION) - Avient now has two reportable segments: Color, Additives and Inks, and Specialty Engineered Materials, following the reclassification of the Distribution business as a discontinued operation[43](index=43&type=chunk)[74](index=74&type=chunk) **Segment Sales and Operating Income (in millions):** | Segment | Sales (3M Sep 30, 2022) | Op. Income (3M Sep 30, 2022) | Sales (9M Sep 30, 2022) | Op. Income (9M Sep 30, 2022) | | :----------------------------- | :---------------------- | :--------------------------- | :---------------------- | :--------------------------- | | Color, Additives and Inks | $565.6 | $68.6 | $1,864.2 | $256.7 | | Specialty Engineered Materials | $258.2 | $31.4 | $743.6 | $104.9 | | Corporate and eliminations | $(0.5) | $(59.4) | $(1.3) | $(118.7) | | Total | $823.3 | $40.6 | $2,606.5 | $242.9 | **Segment Total Assets (in millions):** | Segment | As of September 30, 2022 | As of December 31, 2021 | | :----------------------------- | :----------------------- | :---------------------- | | Color, Additives and Inks | $2,718.5 | $2,965.2 | | Specialty Engineered Materials | $2,317.3 | $771.0 | | Corporate and eliminations | $903.5 | $878.8 | | Assets held for sale | $367.8 | $382.2 | | Total assets | $6,307.1 | $4,997.2 | [Note 10 — COMMITMENTS AND CONTINGENCIES](index=16&type=section&id=Note%2010%20%E2%80%94%20COMMITMENTS%20AND%20CONTINGENCIES) - Avient has an environmental obligation at the former Goodrich Corporation Calvert City facility, with a current reserve of **$120.9 million** for remediation costs[48](index=48&type=chunk)[49](index=49&type=chunk) **Environmental Remediation Costs and Recoveries (in millions):** | Metric | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2022 | | :-------------------------------- | :------------------------------ | :----------------------------- | | Environmental remediation expense | $18.8 | $23.8 | | Insurance recoveries | $0.1 | $8.3 | - Accruals for probable future environmental expenditures totaled **$131.6 million** as of September 30, 2022[49](index=49&type=chunk) [Note 11 — DERIVATIVES AND HEDGING](index=17&type=section&id=Note%2011%20%E2%80%94%20DERIVATIVES%20AND%20HEDGING) - Avient uses cross-currency swaps as net investment hedges to mitigate currency fluctuations on euro investments, with combined notional amounts of **€1,467.2 million** (May 2025) and **€900.0 million** (August 2027)[51](index=51&type=chunk) - Gains of **$98.2 million** (3 months) and **$150.2 million** (9 months) were recognized in Accumulated Other Comprehensive Income (AOCI) for net investment hedges in 2022[52](index=52&type=chunk) - Interest rate swaps with a notional amount of **$150.0 million** are designated as cash flow hedges, converting floating-rate debt to a fixed rate of **2.732%** until November 2022[53](index=53&type=chunk) - Derivatives not designated for hedge accounting, including forward starting cross-currency swaps (**€900.0 million**) and foreign currency forward contracts (**€350 million**) for the APM acquisition, resulted in an expense of **$38.2 million** (3 months) and **$37.3 million** (9 months) in Other income, net[54](index=54&type=chunk) **Fair Value of Derivative Financial Instruments (in millions):** | Instrument | Balance Sheet Location | September 30, 2022 | December 31, 2021 | | :------------------------------------ | :----------------------- | :----------------- | :------------------ | | Interest Rate Swaps (Cash Flow Hedge) | Other current assets | $0.1 | — | | Cross Currency Swaps (Net Investment Hedge) | Other non-current assets | $103.3 | $31.7 | | Interest Rate Swaps (Cash Flow Hedge) | Other current liabilities | — | $3.1 | [Note 12 — SUBSEQUENT EVENTS](index=19&type=section&id=Note%2012%20%E2%80%94%20SUBSEQUENT%20EVENTS) - The sale of the Distribution business was completed on November 1, 2022[58](index=58&type=chunk) - After-tax proceeds from the sale are being used to redeem the entire outstanding **$600.0 million** of 5.25% Senior Notes due March 15, 2023[59](index=59&type=chunk) - An additional **$150.0 million** of the proceeds is being used to repay a portion of the senior secured term loans[59](index=59&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=20&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on Avient's financial condition and results of operations, including strategic developments, performance analysis, liquidity, and capital resources [Our Business](index=20&type=section&id=Our%20Business) - Avient Corporation is a premier provider of specialized and sustainable material solutions, including specialty engineered materials, advanced composites, ultra-lightweight and highly engineered fibers, and color and additive systems[62](index=62&type=chunk) - The company provides value by linking its knowledge of polymers and formulation technology with manufacturing and supply chain capabilities[62](index=62&type=chunk) [Highlights and Executive Summary](index=20&type=section&id=Highlights%20and%20Executive%20Summary) **Avient's Key Financial Highlights (in millions):** | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Sales | $823.3 | $818.0 | $2,606.5 | $2,508.5 | | Operating income | $40.6 | $52.8 | $242.9 | $229.6 | | Net (loss) income attributable to Avient common shareholders | $(10.3) | $52.9 | $158.6 | $201.0 | [Trends and Developments](index=20&type=section&id=Trends%20and%20Developments) - The Company completed the acquisition of DSM Protective Materials (APM) on September 1, 2022, for **$1.4 billion**, enhancing its material offerings[65](index=65&type=chunk) - Avient entered into an agreement on August 11, 2022, to sell its Distribution business for **$950.0 million**, which is now classified as a discontinued operation[66](index=66&type=chunk) - The acquisition of Magna Colours, a leader in sustainable, water-based inks, was completed on July 1, 2021, for **$47.6 million**[67](index=67&type=chunk) - The company continues to monitor the impact of the COVID-19 pandemic on its business, supply chain, and distribution network[68](index=68&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) **Sales Performance (in millions):** | Period | Sales (2022) | Sales (2021) | Change ($) | Change (%) | | :------------------------------------ | :----------- | :----------- | :--------- | :--------- | | Three Months Ended September 30 | $823.3 | $818.0 | $5.3 | 0.6% | | Nine Months Ended September 30 | $2,606.5 | $2,508.5 | $98.0 | 3.9% | - Sales growth in Q3 2022 was driven by the APM acquisition (**3.9%**) and price increases, partially offset by negative foreign exchange (**7.1%**) and lower global demand[70](index=70&type=chunk) - Cost of sales as a percentage of sales increased due to raw material inflation, acquisition-related costs, and higher environmental remediation costs[72](index=72&type=chunk) - Interest expense, net, increased significantly due to new debt issuances (2030 Notes and 2029 Term Loan) to fund the APM acquisition[72](index=72&type=chunk) - The effective tax rate for continuing operations was a **4.1%** benefit in Q3 2022 (due to pretax loss) but a **29.4%** expense for the nine months ended September 30, 2022 (due to foreign withholding tax liabilities and GILTI tax)[73](index=73&type=chunk) [SEGMENT INFORMATION](index=22&type=section&id=SEGMENT%20INFORMATION) - The Distribution business segment has been removed and its results are presented as discontinued operations[74](index=74&type=chunk) [Color, Additives and Inks](index=23&type=section&id=Color,%20Additives%20and%20Inks) **Color, Additives and Inks Segment Performance (in millions):** | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Sales | $565.6 | $586.6 | $1,864.2 | $1,820.3 | | Operating Income | $68.6 | $66.8 | $256.7 | $241.9 | | Operating income as a percentage of sales | 12.1% | 11.4% | 13.8% | 13.3% | - Sales decreased by **3.6%** in Q3 2022, primarily due to a **7.7%** negative impact from foreign exchange, partially offset by price increases[79](index=79&type=chunk) - Operating income increased due to pricing, lower selling and administrative expenses, and acquisition synergies, despite inflation, negative foreign exchange, and lower demand[79](index=79&type=chunk) [Specialty Engineered Materials](index=23&type=section&id=Specialty%20Engineered%20Materials) **Specialty Engineered Materials Segment Performance (in millions):** | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Sales | $258.2 | $231.7 | $743.6 | $685.3 | | Operating Income | $31.4 | $30.0 | $104.9 | $98.4 | | Operating income as a percentage of sales | 12.2% | 12.9% | 14.1% | 14.4% | - Sales increased by **11.4%** in Q3 2022, driven by the APM acquisition (**13.9%**) and price increases, partially offset by a **5.6%** negative foreign exchange impact[80](index=80&type=chunk) - Operating income increased due to pricing, the APM acquisition, and lower selling and administrative expenses, despite inflation, negative foreign exchange, and accelerating lower demand[81](index=81&type=chunk) [Corporate and Eliminations](index=24&type=section&id=Corporate%20and%20Eliminations) - Corporate and Eliminations costs increased by **$15.4 million** (**35%**) in Q3 2022, primarily due to higher environmental remediation costs (**$9.4 million**) and acquisition costs (**$13.2 million**), partially offset by lower incentive costs[82](index=82&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) **Liquidity Position (in millions):** | Metric | As of September 30, 2022 | As of December 31, 2021 | | :---------------------------- | :----------------------- | :---------------------- | | Cash and cash equivalents | $544.4 | $601.2 | | Revolving credit availability | $485.1 | $485.5 | | Total Liquidity | $1,029.5 | $1,086.7 | - Approximately **50%** of the Company's cash and cash equivalents resided outside the United States as of September 30, 2022[83](index=83&type=chunk) - Expected sources of cash for the remainder of 2022 include cash on hand, proceeds from the Distribution business sale, operating cash flow, and available revolving credit[83](index=83&type=chunk) [Cash Flows](index=24&type=section&id=Cash%20Flows) - Net cash provided by operating activities increased to **$223.9 million** for the nine months ended September 30, 2022, from **$110.0 million** in the prior year, primarily due to lower working capital[84](index=84&type=chunk) - Net cash used by investing activities significantly increased to **$1,387.9 million**, mainly reflecting the **$1,426.1 million** APM acquisition[84](index=84&type=chunk) - Net cash provided by financing activities was **$1,138.1 million**, primarily from **$1,300.0 million** in debt proceeds, partially offset by dividends paid, debt financing costs, and share repurchases[86](index=86&type=chunk) [Debt](index=25&type=section&id=Debt) - As of September 30, 2022, the principal amount of debt totaled **$3,166.4 million**[87](index=87&type=chunk) **Aggregate Maturities of Principal Amount of Debt (in millions):** | Year | Amount | | :--- | :----- | | 2022 | $3.2 | | 2023 | $614.3 | | 2024 | $14.3 | | 2025 | $664.4 | | 2026 | $12.6 | | Thereafter | $1,857.6 | | Aggregate maturities | $3,166.4 | - New debt includes **$725 million** of 7.125% Senior Notes due 2030 and a **$575 million** Senior Secured Term Loan due 2029, used to finance the APM Acquisition[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - The Company was in compliance with all financial and restrictive covenants pertaining to its debt as of September 30, 2022[90](index=90&type=chunk) [Derivatives and Hedging](index=25&type=section&id=Derivatives%20and%20Hedging) - Avient uses various derivative transactions to manage market risks related to foreign currency exchange rates and interest rates[91](index=91&type=chunk) [Material Cash Requirements](index=25&type=section&id=Material%20Cash%20Requirements) - Future obligations include debt and interest payments, derivative instruments, operating leases, pension and post-retirement benefit plans, and purchase obligations[92](index=92&type=chunk) - The 2029 Term Loan (**$575 million**) and 2030 Notes (**$725 million**) incurred during the nine months ended September 30, 2022, add to these material cash requirements[92](index=92&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=26&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section confirms no material changes to the company's market risk exposures since the Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes to exposures to market risk have occurred since the Annual Report on Form 10-K for the year ended December 31, 2021[93](index=93&type=chunk) PART II — OTHER INFORMATION [ITEM 4. CONTROLS AND PROCEDURES](index=27&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section details the evaluation of Avient's disclosure controls and procedures, confirming their effectiveness and noting no material changes in internal control over financial reporting [Disclosure controls and procedures](index=27&type=section&id=Disclosure%20controls%20and%20procedures) - Avient's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of September 30, 2022[94](index=94&type=chunk) - The assessment of disclosure controls and procedures did not include the recently acquired APM business, which constituted approximately **26%** of total assets and **1%** of net sales, due to ongoing integration[94](index=94&type=chunk) [Changes in internal control over financial reporting](index=27&type=section&id=Changes%20in%20internal%20control%20over%20financial%20reporting) - There were no changes in Avient's internal control over financial reporting during the quarter ended September 30, 2022, that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[95](index=95&type=chunk) [ITEM 1. LEGAL PROCEEDINGS](index=27&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 10, Commitments and Contingencies, for detailed information on legal proceedings - Information regarding certain legal proceedings is incorporated by reference from Note 10, Commitments and Contingencies[96](index=96&type=chunk) [ITEM 1A. RISK FACTORS](index=27&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section confirms no material changes to previously disclosed risk factors during the third quarter ended September 30, 2022 - No material changes to the previously disclosed risk factors occurred during the third quarter ended September 30, 2022[97](index=97&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=27&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section reports no common share repurchases during the third quarter of 2022, with 5.0 million shares remaining available under authorization - No common shares were purchased during the three months ended September 30, 2022[99](index=99&type=chunk) - Approximately **5.0 million** shares remained available for purchase under the existing share repurchase authorization as of September 30, 2022[99](index=99&type=chunk) [EXHIBIT INDEX](index=28&type=section&id=EXHIBIT%20INDEX) This section lists all exhibits filed with the Form 10-Q, including key agreements for business transactions and certifications - Includes the Asset Purchase Agreement for the Distribution business sale[100](index=100&type=chunk) - Lists the Indenture for the 7.125% Senior Notes due 2030 and Amendment Agreement No. 7 for the Senior Secured Term Loan due 2029[100](index=100&type=chunk) - Contains certifications by the Chairman, President and CEO, and the Senior Vice President and Chief Financial Officer[100](index=100&type=chunk) [SIGNATURES](index=29&type=section&id=SIGNATURES) This section confirms the official signing of the report on behalf of Avient Corporation by the Senior Vice President and Chief Financial Officer - The report was signed by Jamie A. Beggs, Senior Vice President and Chief Financial Officer, on November 2, 2022[101](index=101&type=chunk)

Avient Corporation (NYSE:AVNT) Q2 2022 Earnings Conference Call July 26, 2022 8:00 AM ET Company Participants Giuseppe Di Salvo - VP, Treasurer & IR Robert Patterson - Chairman, President & CEO Jamie Beggs - SVP & CFO Conference Call Participants Frank Mitsch - Fermium Research Michael Sison - Wells Fargo P.J. Juvekar - Citi Angel Castillo - Morgan Stanley Mike Harrison - Seaport Research Partners Laurence Alexander - Jefferies Benjamin Kallo - Baird Kristen Owen - Oppenheimer Vincent Anderson - Stifel Jaid ...

Q1 2022 Performance - Avient's Q1 2022 sales reached $1.294 billion, reflecting an 11% increase[13] - The adjusted operating income for Q1 2022 was $136 million[13] - Adjusted EPS for Q1 2022 stood at $0.99[17] Segment Performance - Color, Additives and Inks (CAI) sales were $650 million, a 7% increase (10% excluding FX)[12] with operating income of $95 million, a 7% increase (11% excluding FX)[12] - Specialty Engineered Materials (SEM) sales were $245 million, a 13% increase (17% excluding FX)[12] with operating income of $40 million, an 18% increase (20% excluding FX)[12] - Distribution sales were $433 million, a 19% increase[12], with operating income flat at $24 million[12] Dyneema Acquisition - Avient is acquiring Dyneema for $1.48 billion, which represents a 11.4x multiple of 2022 EBITDA[19, 54] - Dyneema is expected to contribute $415 million in sales with over 30% EBITDA margins[19] - The acquisition is expected to add $0.35 to Avient's pro forma 2022 EPS (excluding intangible amortization)[19, 21] - The composites platform revenue will increase from $261 million to $680 million and EBITDA from $49 million to $180 million[19] Distribution Divestiture - The Distribution business has grown its healthcare portfolio to over 25% of sales[52] - The Distribution business has 98% free cash flow conversion drives greater than 30% after-tax return on invested capital (ROIC)[52] - Potential divestiture allows us to remain modestly leveraged with net debt to adjusted EBITDA expected to be 2.9x[52] Pro Forma Modeling (with Dyneema Acquisition and Potential Distribution Divestiture) - Pro forma revenue with Dyneema acquisition is estimated at $5.515 billion, and with the potential divestiture of Distribution, it's estimated at $3.740 billion[64] - Pro forma adjusted EBITDA with Dyneema acquisition is estimated at $765 million, and with the potential divestiture of Distribution, it's estimated at $660 million[64] - Pro forma EPS (excluding amortization) with Dyneema acquisition is estimated at $4.31, and with the potential divestiture of Distribution, it's estimated at $3.75[64]

Avient Corporation (NYSE:AVNT) Q1 2022 Earnings Conference Call April 20, 2022 8:00 AM ET Company Participants Giuseppe Di Salvo - VP, Treasurer and IR Robert M. Patterson - Chairman, President and CEO Jamie A. Beggs - SVP and CFO Conference Call Participants P.J. Juvekar - Citi Michael Sison - Wells Fargo Frank Mitsch - Fermium Research Angel Castillo - Morgan Stanley Michael Harrison - Seaport Global Securities Kristen Owen - Oppenheimer Dan Rizzo - Jefferies and Company Vincent Anderson - Stifel Nicolaus ...

PART I [Item 1. Business](index=3&type=section&id=Item%201.%20Business) Avient Corporation is a global formulator of specialized polymer solutions, operating in three segments with a focus on R&D and human capital [Business Overview](index=3&type=section&id=Business%20Overview) Avient, rebranded in **2020**, is a global formulator of specialized material solutions with **102** manufacturing sites and **$4.8 billion** in **2021** sales - Avient is a global formulator of specialized polymer solutions with products including specialty engineered materials, advanced composites, and color systems[4](index=4&type=chunk) - The company was formed as PolyOne Corporation in **2000** and rebranded to Avient Corporation in July **2020** following the acquisition of Clariant's global color business[4](index=4&type=chunk) 2021 Company Snapshot | Metric | Value | | :--- | :--- | | 2021 Sales | $4.8 billion | | International Sales % | ~53% | | Manufacturing Sites | 102 | | Distribution Facilities | 8 | [Avient Segments](index=4&type=section&id=Avient%20Segments) Avient operates through three reportable segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution - Avient's operations are structured into three reportable segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution[7](index=7&type=chunk) [Competition](index=4&type=section&id=Competition) Avient faces intense competition in plastics formulation and polymer distribution, based on service, innovation, quality, and price - The plastics formulation and distribution industries are highly competitive, with competition based on factors like service, performance, innovation, quality, and price[8](index=8&type=chunk) [Raw Materials](index=5&type=section&id=Raw%20Materials) Primary raw materials include thermoplastic resins, TiO2, pigments, and additives, with minor supply disruptions experienced in **2021** - Primary raw materials include thermoplastic resins, TiO2, pigments, and specialty additives. The company experienced some non-material supply disruptions and logistical delays in **2021**[10](index=10&type=chunk) [Research and Development](index=5&type=section&id=Research%20and%20Development) Avient invests significantly in R&D, employing **1,000** associates to develop new product formulations for market and sustainability needs Research and Development Investment | Year | R&D Investment (in millions) | | :--- | :--- | | 2021 | $83.2 | | 2020 | $59.8 | | 2019 | $50.6 | [Human Capital Resources](index=6&type=section&id=Human%20Capital%20Resources) Avient employs **8,700** globally, prioritizing safety, diversity, and inclusion, and has been recognized as a Great Place to Work - As of year-end **2021**, Avient employed approximately **8,700 people**, with **34%** in the U.S. and Canada, **34%** in EMEA, **25%** in Asia, and **7%** in Latin America[18](index=18&type=chunk) - The company maintained a world-class safety record in **2021** with a recordable incident rate of **0.55** per **100** full-time workers, compared to an industry average of **3.50** in **2020**[19](index=19&type=chunk) - Avient demonstrates a strong commitment to diversity, with **42%** of its Board of Directors and **64%** of the CEO's direct reports being female or racially/ethnically diverse[22](index=22&type=chunk) [Item 1A. Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) Avient faces material risks including global operating, business-specific (demand, costs, cybersecurity), capital, credit, and COVID-19 pandemic impacts [Global Operating Risks](index=9&type=section&id=Global%20Operating%20Risks) Avient's substantial international sales (**53%**) expose it to global operating risks like regulatory changes, political instability, and data privacy - The company conducts a substantial portion of its business outside the U.S., with approximately **53%** of sales in foreign countries, exposing it to various international risks[31](index=31&type=chunk) [Business Risks](index=10&type=section&id=Business%20Risks) Business risks include demand volatility, manufacturing hazards, raw material cost fluctuations, regulatory compliance, and cybersecurity threats - Demand for products can be affected by economic downturns, competition, and changes in environmental regulations[32](index=32&type=chunk) - Fluctuations in the cost of electricity, fuel, logistics, and raw materials can cause volatility in financial results[34](index=34&type=chunk) - Cybersecurity breaches and information system threats pose a risk to the security of systems, networks, and sensitive data, which could harm the business[35](index=35&type=chunk) [Capital and Credit Risks](index=11&type=section&id=Capital%20and%20Credit%20Risks) Capital and credit risks include limited access to capital, restrictive debt covenants, significant debt servicing, and goodwill impairment risk - Debt agreements contain various restrictive covenants that limit actions such as selling assets, incurring additional debt, and paying dividends[36](index=36&type=chunk)[37](index=37&type=chunk) - As of December **31**, **2021**, the company had goodwill of **$1,286.4 million**, which could be subject to impairment charges if adverse business changes occur[40](index=40&type=chunk) [COVID-19 Pandemic Risks](index=12&type=section&id=COVID-19%20Pandemic%20Risks) The COVID-19 pandemic poses ongoing risks including production shutdowns, supply chain disruptions, cost increases, and reduced customer liquidity - The COVID-19 pandemic could negatively impact the business through production shutdowns, supply chain disruptions, increased costs, and reduced customer liquidity[43](index=43&type=chunk) [Item 2. Properties](index=13&type=section&id=Item%202.%20Properties) Avient operates **102** manufacturing sites and **8** distribution facilities globally, with sufficient production capacity for the foreseeable future - The company operates **102** manufacturing sites and **8** distribution facilities globally. The majority of manufacturing sites are owned, while distribution facilities are leased[44](index=44&type=chunk) [Information About Our Executive Officers](index=15&type=section&id=Information%20About%20Our%20Executive%20Officers) This section lists Avient's executive officers as of February **4**, **2022**, including their positions and professional biographies - Lists the names, ages, and positions of the company's executive officers as of February **4**, **2022**, along with their professional backgrounds[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=17&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Avient's common shares trade on the NYSE (AVNT), with **1,543** holders of record and an active share repurchase program - The company's common stock is traded on the NYSE under the ticker AVNT[51](index=51&type=chunk) Share Repurchase Activity (Q4 2021) | Period | Total Number of Shares Purchased | Maximum Shares Remaining for Purchase | | :--- | :--- | :--- | | Oct 2021 | 0 | 5,757,472 | | Nov 2021 | 0 | 5,757,472 | | Dec 2021 | 0 | 5,757,472 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In **2021**, Avient achieved significant sales and operating income growth, driven by acquisitions and segment performance, while maintaining strong liquidity [Results of Operations](index=20&type=section&id=Results%20of%20Operations) In **2021**, sales grew **48.6%** to **$4.82 billion** and operating income rose **101.4%** to **$381.2 million**, driven by acquisition and market growth Consolidated Results of Operations (2021 vs. 2020) | Metric (in millions) | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Sales | $4,818.8 | $3,242.1 | 48.6% | | Gross margin | $1,099.6 | $784.3 | 40.2% | | Operating income | $381.2 | $189.3 | 101.4% | | Net income from continuing operations | $230.6 | $133.8 | 72.3% | | Diluted EPS from continuing operations | $2.51 | $1.46 | 71.9% | - The increase in sales was attributed to the Clariant Color Acquisition, growth in many end markets, and price increases to counter raw material inflation[65](index=65&type=chunk) - The effective income tax rate increased to **24.3%** in **2021** from **3.7%** in **2020**. The **2020** rate was significantly lower due to a **$18.2 million** (**13.1%**) tax benefit from a carryback of capital losses[72](index=72&type=chunk)[73](index=73&type=chunk) [Segment Information](index=22&type=section&id=Segment%20Information) All three segments, Color, Additives and Inks, Specialty Engineered Materials, and Distribution, reported significant sales growth in **2021** Segment Sales and Operating Income (2021 vs. 2020) | Segment (in millions) | 2021 Sales | 2020 Sales | % Change | 2021 Op. Income | 2020 Op. Income | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Color, Additives and Inks | $2,401.6 | $1,502.9 | 59.8% | $303.1 | $180.8 | 67.6% | | Specialty Engineered Materials | $918.9 | $708.8 | 29.6% | $132.0 | $94.4 | 39.8% | | Distribution | $1,630.9 | $1,110.3 | 46.9% | $93.2 | $69.5 | 34.1% | - The Color, Additives and Inks segment's growth was primarily driven by the Clariant Color Acquisition[78](index=78&type=chunk) - The Specialty Engineered Materials segment's growth was largely driven by high demand for advanced composite materials[79](index=79&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) Avient maintained strong liquidity of **$1.09 billion** at year-end **2021**, with total debt at **$1.86 billion**, and sufficient capital for future operations Liquidity Summary (as of Dec 31, 2021) | Component (in millions) | Amount | | :--- | :--- | | Cash and cash equivalents | $601.2 | | Revolving credit availability | $485.5 | | **Total Liquidity** | **$1,086.7** | Total Debt Summary (as of Dec 31) | (in millions) | 2021 | 2020 | | :--- | :--- | :--- | | Total debt | $1,858.9 | $1,872.6 | - Capital expenditures are estimated to be approximately **$135 million** in **2022**[82](index=82&type=chunk) [Cash Flows](index=24&type=section&id=Cash%20Flows) Operating cash flow increased slightly to **$233.8 million** in **2021**, while investing and financing activities used **$150.2 million** and **$114.6 million**, respectively Summary of Cash Flows (in millions) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash from Operating Activities | $233.8 | $221.6 | | Net cash from Investing Activities | ($150.2) | ($1,431.6) | | Net cash from Financing Activities | ($114.6) | $982.0 | [Critical Accounting Policies and Estimates](index=25&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant estimates for environmental liabilities (**$124.5 million**), pension plans, income taxes, and goodwill impairment testing - The undiscounted accrual for probable future environmental expenditures was **$124.5 million** at December **31**, **2021**[95](index=95&type=chunk) - For pension and post-retirement plans, the company recognized a **$9.4 million** loss in **2021**, primarily due to actual asset returns being lower than assumed returns[97](index=97&type=chunk) - The annual goodwill impairment test, performed as of October **1**, **2021**, resulted in no impairment charges, with no reporting units considered to be at risk[98](index=98&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Avient manages market risks from interest rate and foreign currency fluctuations using derivative financial instruments for mitigation, not speculation - The company is exposed to market risks from interest rate changes on variable-rate debt and foreign currency fluctuations[100](index=100&type=chunk) - Derivative instruments are used for risk management purposes to mitigate these exposures, not for speculation[100](index=100&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=30&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Avient's consolidated financial statements for **2021**, along with management's report and the independent auditor's unqualified opinion [Consolidated Financial Statements](index=35&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show **2021** sales of **$4.8 billion**, net income of **$230.6 million**, and total assets of **$5.0 billion** Key Financial Highlights (Year Ended Dec 31, 2021) | Metric (in millions, except per share data) | 2021 Value | | :--- | :--- | | Sales | $4,818.8 | | Operating Income | $381.2 | | Net Income | $230.6 | | Diluted EPS | $2.51 | | Total Assets (at year-end) | $4,997.2 | | Total Equity (at year-end) | $1,790.5 | [Notes to Consolidated Financial Statements](index=41&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes provide detailed disclosures on business combinations (Clariant Color Acquisition), financing (**$1.86 billion** debt), environmental liabilities (**$124.5 million**), and segment information - The purchase accounting for the **$1.4 billion** Clariant Color Acquisition was finalized as of June **30**, **2021**, resulting in **$561.2 million** of goodwill allocated to the Color, Additives and Inks segment (Note **2**)[160](index=160&type=chunk)[163](index=163&type=chunk) - As of December **31**, **2021**, total debt was **$1.86 billion**, consisting primarily of senior notes and a senior secured term loan. The company was in compliance with all debt covenants (Note **6**)[179](index=179&type=chunk)[181](index=181&type=chunk) - Environmental liabilities totaled **$124.5 million** as of December **31**, **2021**, with the majority (**$113.2 million**) related to the Calvert City remediation site (Note **12**)[211](index=211&type=chunk) [Item 9A. Controls and Procedures](index=68&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December **31**, **2021**, with no material weaknesses - Management concluded that the company's disclosure controls and procedures were effective as of December **31**, **2021**[249](index=249&type=chunk) - Management's annual report on internal control over financial reporting concluded that such controls were effective as of December **31**, **2021**, with no material weaknesses identified[250](index=250&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=70&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section incorporates by reference information from the **2022** Proxy Statement regarding directors, audit committee, and corporate governance - Information regarding directors, the audit committee, and corporate governance is incorporated by reference from the **2022** Proxy Statement[255](index=255&type=chunk) [Item 11. Executive Compensation](index=70&type=section&id=Item%2011.%20Executive%20Compensation) This section incorporates by reference executive and director compensation information from the **2022** Proxy Statement - Information regarding executive and director compensation is incorporated by reference from the **2022** Proxy Statement[256](index=256&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=70&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) This section details equity compensation plans, including **2.5 million** securities to be issued and **2.34 million** available for future issuance Equity Compensation Plan Information | Plan Category | Securities to be Issued Upon Exercise (a) | Weighted-Average Exercise Price (b) | Securities Remaining for Future Issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 2,501,061 | $35.64 | 2,340,343 | | Total | 2,501,061 | $35.64 | 2,340,343 | PART IV [Item 15. Exhibit and Financial Statement Schedules](index=72&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Annual Report on Form **10-K** - Lists all financial statements and exhibits included in the Form **10-K** filing, such as credit agreements, incentive plans, and required SEC certifications[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)

Financial Performance & Growth - Avient reported full year 2021 sales of $4.819 billion, a 27% increase compared to the pro forma full year 2020 sales of $3.783 billion[13] - Adjusted Operating Income for full year 2021 was $429 million, a 27% increase compared to the pro forma full year 2020 Adjusted Operating Income of $308 million[13] - The company achieved record margins in 2021 despite unprecedented supply chain challenges[16] - Avient anticipates $75 million in run-rate synergies from the Clariant Color integration by the end of 2022[55] - Adjusted EBITDA for full year 2021 was $581 million compared to $457 million in 2020[14] Clariant Color Acquisition - The acquisition of Clariant Color was completed on July 1, 2020, for $1.45 billion[19] - $54 million of synergies were realized in 2021 from the Clariant Color acquisition[19] - The synergy target for the Clariant Color integration has been increased to $85 million[23] Sustainability - Revenue from sustainable solutions grew 16% in 2021[28] - Avient expects revenue from sustainable solutions to grow 8-12% in 2022[28] Outlook - Avient projects 15% adjusted EPS growth to $3.50 in 2022[55] - The company forecasts adjusted EBITDA of $635 million for 2022, representing 9% growth above 2021, or 11% excluding the impact of foreign currencies[55]