LYB
#Thank you, <UNK>
Please turn to Slide 8 which puts fourth quarter and full year segment results
As <UNK> already mentioned, both O&P-EAI and the Technology segments achieved their second consecutive year of record EBITDA during 2016 with O&P-EAI surpassing $2 billion
<UNK> will review these results in more detail during the segment discussions
Our fourth quarter results included a $58 million charge for a lump sum pension settlement that negatively impacted the quarter by $0.09 per share
In addition, our full year results included the $78 million after-tax gain on the sale of our Argentine polymer business
During the 2016 cost process, we addressed an issue within our primary tax calculations
The issue is not material to any period and pertains to the other complicated tax accounting for our cross currency debt swap
As a result during fourth quarter we had recorded $61 million non-cash out of period cumulative correction charge for 2014, 2015, and through the third quarter of 2016. The impact to the full year 2016 results to correct for the 2014 and 2015 out of period amount is $74 million
These are non-cash charges and will not impact our cumulative taxes over the life of this loan
However, it does negatively impact our fourth quarter and 2016 effective tax rate by 5.8 and 1.4 percentage points respectively
Together the pension settlement and the correction charge adversely impacted fourth quarter earnings by $0.24 per share
The combined impact of the pension settlement, the correction charge, and the gain on the sale of our Argentine polymer business negatively impacted full year 2016 earnings by $0.07 per share
Please turn to Slide 9 which provides a picture of our cash generation and use
During 2016, we generated $5.6 billion of cash from operations
We also took advantage of favorable markets and further optimized our euro to U.S
dollar debt balances by issuing €750 million in bonds at a coupon rate of 1.875%
The cash and short-term security balance remained relatively constant for the year at $2.4 billion
Turning to Slide 10, you can see that the $5.6 billion in cash from operations during 2016 compares well with the prior three years
This strong cash generation has allowed us to fund both internally reinvestments and returns to shareholders
Over the past four years, we have funded $6.7 billion of capital investments, approx one half of this investment was allocated to profit generating growth project
We have returned $20.7 billion through dividends and share repurchases over the past four years
Since the inception of our share repurchase program, we have repurchased approximately 179 million shares or approximately 31% of the initial shares outstanding
At the end of 2016, we had approximately 21 million shares or 50% remaining under the current 18 months share repurchase authorization that begun in May of 2016. As we do every year, I would like to address some of your 2017 modeling questions
Regarding capital, we are currently planning to spend approximately $2 billion during 2017. This spending level advances both our base maintenance and growth program approximately 45% is targeted toward profit generating growth
A large part of this growth investment in 2017 will be dedicated to the new Hyperzone polyethylene plant that is scheduled to begin production in 2019. Although not all plants are finalized yet, we estimate capital spending to range between $2 billion and $2.5 billion annually to 2021. Approximately 50% of this spent is targeted toward profit generating growth
The largest individual growth project in this period is PO/TBA plant that we plan to advance toward a final investment position in the first-half of 2017. Our net cash interest expense for 2017 is expected to be approximately $350 million with a weighted average cost of long-term borrowings of close to 5%
2017 annual book depreciation and amortization should be approximately $1.1 billion
We plan to make regular pension contribution in 2017 a total approximately $110 million and we estimate the pension expense of approximately $65 million
We currently expect a 2017 effective tax rate of approximately 27%, the cash tax rate is expected to be slightly lower
Now, I will turn the call back to <UNK> for a discussion of our segment results
Thank you
It's <UNK> <UNK> speaking, thanks for the question
I don’t think we should focus the share repurchase program quarter-by-quarter
The way to look at it ,we initiated the new 10C51 in May of 2016 and completed virtually 50% by year end of that existing program, roughly 8.3% for the full year and as we have said in the material in front of you, it is an 18 months program, and obviously we are not commenting on future - how we are going to buy in the future, but clearly have the intention to finish the program as we have done in the past
<UNK>rey <UNK> Okay
Your cash flow from operations was $1.7 billion in the quarter
And when you look at depreciation and net income and working capital changes, it comes to about $1.2 billion
What led to the extra $500 million in cash generation in the quarter?
