An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

LyondellBasell Industries N.V., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Total undiscounted future operating lease payments	2,475)	1,445)	1,650)	1,799)	1,805)
Discount rate¹	4.55%	4.66%	4.64%	5.01%	5.06%

Total present value of future operating lease payments	1,978)	1,101)	1,388)	1,502)	1,469)

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).

¹ Weighted-average interest rate for LyondellBasell Industries N.V. debt

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.55%
2019	365)	2019	365)	349)
2020	288)	2020	288)	263)
2021	256)	2021	256)	224)
2022	236)	2022	236)	198)
2023	204)	2023	204)	163)
2024 and thereafter	1,126)	2024	204)	156)
		2025	204)	149)
		2026	204)	143)
		2027	204)	137)
		2028	204)	131)
		2029	106)	65)
Total:	2,475)		2,475)	1,978)

Based on: 10-K (reporting date: 2018-12-31).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.66%
2018	311)	2018	311)	297)
2019	232)	2019	232)	212)
2020	194)	2020	194)	169)
2021	165)	2021	165)	138)
2022	26)	2022	26)	21)
2023 and thereafter	517)	2023	26)	20)
		2024	26)	19)
		2025	26)	18)
		2026	26)	17)
		2027	26)	16)
		2028	26)	16)
		2029	26)	15)
		2030	26)	14)
		2031	26)	14)
		2032	26)	13)
		2033	26)	13)
		2034	26)	12)
		2035	26)	11)
		2036	26)	11)
		2037	26)	10)
		2038	26)	10)
		2039	26)	10)
		2040	26)	9)
		2041	26)	9)
		2042	23)	7)
Total:	1,445)		1,445)	1,101)

Based on: 10-K (reporting date: 2017-12-31).

2016 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.64%
2017	341)	2017	341)	326)
2018	286)	2018	286)	261)
2019	211)	2019	211)	184)
2020	173)	2020	173)	144)
2021	146)	2021	146)	116)
2022 and thereafter	493)	2022	146)	111)
		2023	146)	106)
		2024	146)	102)
		2025	55)	37)
Total:	1,650)		1,650)	1,388)

Based on: 10-K (reporting date: 2016-12-31).

2015 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 5.01%
2016	372)	2016	372)	354)
2017	312)	2017	312)	283)
2018	278)	2018	278)	240)
2019	197)	2019	197)	162)
2020	149)	2020	149)	117)
2021 and thereafter	491)	2021	149)	111)
		2022	149)	106)
		2023	149)	101)
		2024	44)	28)
Total:	1,799)		1,799)	1,502)

Based on: 10-K (reporting date: 2015-12-31).

2014 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 5.06%
2015	333)	2015	333)	317)
2016	271)	2016	271)	246)
2017	236)	2017	236)	204)
2018	207)	2018	207)	170)
2019	142)	2019	142)	111)
2020 and thereafter	616)	2020	142)	106)
		2021	142)	101)
		2022	142)	96)
		2023	142)	91)
		2024	48)	29)
Total:	1,805)		1,805)	1,469)

Based on: 10-K (reporting date: 2014-12-31).

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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)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	1,978)	1,101)	1,388)	1,502)	1,469)
Total assets (adjusted)	30,256)	27,307)	24,830)	24,259)	25,752)
Adjustment to Total Debt
Total debt (as reported)	9,387)	8,619)	8,981)	8,028)	7,107)
Add: Operating lease liability (before adoption of FASB Topic 842)²	1,978)	1,101)	1,388)	1,502)	1,469)
Total debt (adjusted)	11,365)	9,720)	10,369)	9,530)	8,576)

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).

^{1, 2} Equal to total present value of future operating lease payments.

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 Turnover¹
Reported total asset turnover	1.38	1.32	1.24	1.44	1.88
Adjusted total asset turnover	1.29	1.26	1.18	1.35	1.77
Debt to Equity²
Reported debt to equity	0.92	0.96	1.48	1.23	0.85
Adjusted debt to equity	1.11	1.09	1.71	1.45	1.03
Return on Assets³ (ROA)
Reported ROA	16.58%	18.62%	16.36%	19.67%	17.19%
Adjusted ROA	15.49%	17.87%	15.45%	18.45%	16.21%

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).

¹ See details »

² See details »

³ See details »

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 debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	LyondellBasell Industries N.V. adjusted debt to equity ratio improved from 2016 to 2017 but then slightly deteriorated 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 Operating Leases
Selected Financial Data (US$ in millions)
Sales and other operating revenues	39,004)	34,484)	29,183)	32,735)	45,608)
Adjusted total assets	30,256)	27,307)	24,830)	24,259)	25,752)
Activity Ratio
Adjusted total asset turnover²	1.29	1.26	1.18	1.35	1.77

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 ÷ 30,256 = 1.29

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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 debt	9,387)	8,619)	8,981)	8,028)	7,107)
Total Company share of stockholders’ equity	10,257)	8,949)	6,048)	6,550)	8,314)
Solvency Ratio
Debt to equity¹	0.92	0.96	1.48	1.23	0.85
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	11,365)	9,720)	10,369)	9,530)	8,576)
Total Company share of stockholders’ equity	10,257)	8,949)	6,048)	6,550)	8,314)
Solvency Ratio
Adjusted debt to equity²	1.11	1.09	1.71	1.45	1.03

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 Debt to equity = Total debt ÷ Total Company share of stockholders’ equity
= 9,387 ÷ 10,257 = 0.92

² Adjusted debt to equity = Adjusted total debt ÷ Total Company share of stockholders’ equity
= 11,365 ÷ 10,257 = 1.11

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	LyondellBasell Industries N.V. adjusted debt-to-equity ratio improved from 2016 to 2017 but then slightly deteriorated 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 Operating Leases
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	30,256)	27,307)	24,830)	24,259)	25,752)
Profitability Ratio
Adjusted ROA²	15.49%	17.87%	15.45%	18.45%	16.21%

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 ÷ 30,256 = 15.49%

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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 Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

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

Adjusted Financial Ratios for Operating Leases (Summary)

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

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)