Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

LyondellBasell Industries N.V., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Emission allowances	807)	786)	697)	687)	730)
Various contracts	508)	552)	518)	525)	542)
Customer relationships	300)	—)	—)	—)	—)
In-process research and development costs	111)	117)	106)	104)	119)
Trade name and trademarks	104)	—)	—)	—)	—)
Know-how	84)	—)	—)	—)	—)
Software costs	64)	73)	70)	83)	104)
Intangible assets, cost	1,978)	1,528)	1,391)	1,399)	1,495)
Accumulated amortization	(1,013)	(960)	(841)	(759)	(726)
Intangible assets, net	965)	568)	550)	640)	769)
Goodwill	1,814)	570)	528)	536)	566)
Goodwill and intangible assets	2,779)	1,138)	1,078)	1,176)	1,335)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

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Item	Description	The company
Intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	LyondellBasell Industries N.V. intangible assets, net increased from 2016 to 2017 and from 2017 to 2018.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	LyondellBasell Industries N.V. goodwill increased from 2016 to 2017 and from 2017 to 2018.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	LyondellBasell Industries N.V. goodwill and intangible assets increased from 2016 to 2017 and from 2017 to 2018.

LyondellBasell Industries N.V., adjustments to financial statements

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Adjustment to Total Assets
Total assets (as reported)	28,278)	26,206)	23,442)	22,757)	24,283)
Less: Goodwill	1,814)	570)	528)	536)	566)
Total assets (adjusted)	26,464)	25,636)	22,914)	22,221)	23,717)
Adjustment to Total Company Share Of Stockholders’ Equity
Total Company share of stockholders’ equity (as reported)	10,257)	8,949)	6,048)	6,550)	8,314)
Less: Goodwill	1,814)	570)	528)	536)	566)
Total Company share of stockholders’ equity (adjusted)	8,443)	8,379)	5,520)	6,014)	7,748)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

LyondellBasell Industries N.V., Financial Data: Reported vs. Adjusted

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LyondellBasell Industries N.V., adjusted financial ratios

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Total Asset Turnover
Reported total asset turnover	1.38	1.32	1.24	1.44	1.88
Adjusted total asset turnover	1.47	1.35	1.27	1.47	1.92
Financial Leverage
Reported financial leverage	2.76	2.93	3.88	3.47	2.92
Adjusted financial leverage	3.13	3.06	4.15	3.69	3.06
Return on Equity (ROE)
Reported ROE	45.71%	54.52%	63.43%	68.34%	50.20%
Adjusted ROE	55.53%	58.23%	69.49%	74.43%	53.87%
Return on Assets (ROA)
Reported ROA	16.58%	18.62%	16.36%	19.67%	17.19%
Adjusted ROA	17.71%	19.03%	16.74%	20.14%	17.60%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	LyondellBasell Industries N.V. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	LyondellBasell Industries N.V. adjusted financial leverage ratio decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	LyondellBasell Industries N.V. adjusted ROE deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	LyondellBasell Industries N.V. adjusted ROA improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

LyondellBasell Industries N.V., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues	39,004)	34,484)	29,183)	32,735)	45,608)
Total assets	28,278)	26,206)	23,442)	22,757)	24,283)
Activity Ratio
Total asset turnover¹	1.38	1.32	1.24	1.44	1.88
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales and other operating revenues	39,004)	34,484)	29,183)	32,735)	45,608)
Adjusted total assets	26,464)	25,636)	22,914)	22,221)	23,717)
Activity Ratio
Adjusted total asset turnover²	1.47	1.35	1.27	1.47	1.92

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ Total asset turnover = Sales and other operating revenues ÷ Total assets
= 39,004 ÷ 28,278 = 1.38

² Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 39,004 ÷ 26,464 = 1.47

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	LyondellBasell Industries N.V. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Total assets	28,278)	26,206)	23,442)	22,757)	24,283)
Total Company share of stockholders’ equity	10,257)	8,949)	6,048)	6,550)	8,314)
Solvency Ratio
Financial leverage¹	2.76	2.93	3.88	3.47	2.92
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	26,464)	25,636)	22,914)	22,221)	23,717)
Adjusted total Company share of stockholders’ equity	8,443)	8,379)	5,520)	6,014)	7,748)
Solvency Ratio
Adjusted financial leverage²	3.13	3.06	4.15	3.69	3.06

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ Financial leverage = Total assets ÷ Total Company share of stockholders’ equity
= 28,278 ÷ 10,257 = 2.76

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Company share of stockholders’ equity
= 26,464 ÷ 8,443 = 3.13

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	LyondellBasell Industries N.V. adjusted financial leverage ratio decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to the Company shareholders	4,688)	4,879)	3,836)	4,476)	4,174)
Total Company share of stockholders’ equity	10,257)	8,949)	6,048)	6,550)	8,314)
Profitability Ratio
ROE¹	45.71%	54.52%	63.43%	68.34%	50.20%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to the Company shareholders	4,688)	4,879)	3,836)	4,476)	4,174)
Adjusted total Company share of stockholders’ equity	8,443)	8,379)	5,520)	6,014)	7,748)
Profitability Ratio
Adjusted ROE²	55.53%	58.23%	69.49%	74.43%	53.87%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ ROE = 100 × Net income attributable to the Company shareholders ÷ Total Company share of stockholders’ equity
= 100 × 4,688 ÷ 10,257 = 45.71%

² Adjusted ROE = 100 × Net income attributable to the Company shareholders ÷ Adjusted total Company share of stockholders’ equity
= 100 × 4,688 ÷ 8,443 = 55.53%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	LyondellBasell Industries N.V. adjusted ROE deteriorated from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to the Company shareholders	4,688)	4,879)	3,836)	4,476)	4,174)
Total assets	28,278)	26,206)	23,442)	22,757)	24,283)
Profitability Ratio
ROA¹	16.58%	18.62%	16.36%	19.67%	17.19%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to the Company shareholders	4,688)	4,879)	3,836)	4,476)	4,174)
Adjusted total assets	26,464)	25,636)	22,914)	22,221)	23,717)
Profitability Ratio
Adjusted ROA²	17.71%	19.03%	16.74%	20.14%	17.60%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

¹ ROA = 100 × Net income attributable to the Company shareholders ÷ Total assets
= 100 × 4,688 ÷ 28,278 = 16.58%

² Adjusted ROA = 100 × Net income attributable to the Company shareholders ÷ Adjusted total assets
= 100 × 4,688 ÷ 26,464 = 17.71%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	LyondellBasell Industries N.V. adjusted ROA improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

LyondellBasell Industries N.V. (NYSE:LYB)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

LyondellBasell Industries N.V., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

LyondellBasell Industries N.V., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)