Avant Brands Annual Report 2021

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FY2021 Annual Report · Avant Brands

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ANNUAL REPORT
2021

CREATING A WORLD-CLASS, SUSTAINABLE ORGANIZATION

Our Sustainability
Guiding Principle and
Four Cornerstones

To enable our customers’

innovation and sustainability

goals through world-class

products and services.

VISION AND STRATEGY

Our Vision

At Avient, we create specialized and sustainable

material solutions that transform customer challenges

into opportunities, bringing new products to life for a

better world.

Specialization

Operational
Excellence

Commercial
Excellence

Associates

Globalization

Our Strategy

Specialization
Differentiates us through unique value-creating offerings

to our customers.

Globalization
Positions us to serve our customers consistently,

everywhere in the world.

Operational Excellence
Empowers us to respond to the voice of the customer

with relentless continuous improvement.

Commercial Excellence
Governs our activities in the marketplace to deliver

extraordinary value to our customers.

CORPORATE OFFICERS

BOARD OF DIRECTORS

LEADERSHIP

ROBERT M. PATTERSON

Chairman, President and Chief Executive Officer

JAMIE A. BEGGS

Senior Vice President, Chief Financial Officer

GIUSEPPE Di SALVO

Vice President, Treasurer and Investor Relations

CATHY K. DODD

Senior Vice President, President of Distribution

MICHAEL A. GARRATT

Senior Vice President,

President of Color, Additives and Inks, EMEA

JUSTIN M. HESS

Vice President, Corporate Controller

AVERY L. JOHNSON

Vice President, Tax

HOLGER KRONIMUS

Vice President, Europe, General Manager,

Engineered Materials, Europe

LISA K. KUNKLE

Senior Vice President, General Counsel and Secretary

M. JOHN MIDEA, JR.

Senior Vice President, Global Operations and

Process Improvement

WOON KEAT MOH

Senior Vice President,

President of Color, Additives and Inks, Americas and Asia

CHRISTOPHER L. PEDERSON

Senior Vice President,

President of Specialty Engineered Materials

JENNIFER N. PRUGH

Vice President, Marketing

VINOD PURAYATH, Ph.D.

Senior Vice President, Chief Technology Officer

JOEL RATHBUN

Senior Vice President, Mergers and Acquisitions

JOÃO JOSÉ SAN MARTIN NETO

Senior Vice President, Chief Human Resources Officer

BRIAN SCHILF

Vice President, Information Technology

THOMAS TAYLOR

Vice President, Global Sourcing and Logistics

ROBERT M. PATTERSON

Chairman, President and Chief Executive Officer,

Avient Corporation

Committee: 3

RICHARD H. FEARON

Lead Director, Avient Corporation

Retired Vice Chairman and Chief Financial and

Planning Officer, Eaton

Committees: 2, 4*

ROBERT E. ABERNATHY

Retired Chairman and Chief Executive Officer,

Halyard Health, Inc.

Committees: 1, 2

GREGORY J. GOFF

Andeavor

Committees: 3*, 4

NEIL GREEN

Former Chairman, President and Chief Executive Officer,

Executive Vice President and Chief Digital Officer,

Otis Worldwide Corporation

Committees: 1, 4

WILLIAM R. JELLISON

Retired Vice President, Chief Financial Officer,

Stryker Corporation

Committees: 1*, 3

SANDRA B. LIN

Retired President, Chief Executive Officer and Director,

Calisolar Inc. (now Silicor Materials Inc.)

Committees: 1, 4

Former Chairman, President and Chief Executive Officer,

KIM ANN MINK, Ph.D.

Innophos Holdings, Inc.

Committees: 1, 3

ERNEST NICOLAS

Rockwell Automation, Inc.

Committees: 2, 3

KERRY J. PREETE

Monsanto Company

Committees: 2*, 4

Senior Vice President and Chief Supply Chain Officer,

Retired Executive Vice President, Chief Strategy Officer,

PATRICIA D. VERDUIN, Ph.D.

Chief Technology Officer,

Colgate-Palmolive Company

Committees: 3, 4

WILLIAM A. WULFSOHN

Former Chairman and Chief Executive Officer,

Ashland Global Holdings Inc.

Committees: 1, 2

Corporate Officers as of December 31, 2021

* Denotes Chairperson

Committees

1. Audit 2. Compensation 3. Environmental, Health and Safety 4. Governance and Corporate Responsibility

OUR CULTURE

LE N

L
E
C
X
E

COL

Core
Values

A
T
I
O

NOVA T I

EC T

P
S
E
R

Personal
Values

T
Y

ONE S T

Core Values

Collaboration. Innovation. Excellence.

These core values, which begin with our individual

decisions and actions, focus our attention on

putting the customer first by creating genuine value

through collaboration, innovation and an unwavering

commitment to excellence. We will uphold these values

with the utmost integrity in all that we do.

Personal Values

Integrity. Honesty. Respect.

These personal values begin with each of us—the

judgments and decisions we make as individuals affect

the way Avient is viewed in the marketplace and in the

communities where we work.

In this annual report, 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. Factors that could cause our actual results to differ materially from those implied by
forward-looking statements are described in detail in Part l of the Form 10-K.

Annual Report | 2021

2 0 2 1

LETTER TO OUR SHAREHOLDERS
Creating a World-Class, Sustainable Organization

Meeting the needs of the present without compromising the ability of future

generations to do the same.

Dear Avient Shareholders,

2021 was our first full year as Avient Corporation. We
selected this new name in July of 2020 following the
acquisition of Clariant’s Color business—the largest
in our history. Avient represents who we are today as
a specialty formulator of sustainable solutions, and it
has served as a galvanizing force in bringing together
two world leaders who truly are better together.

Better together is easily observable in our
differentiated financial performance as we delivered
record results in 2021:

• Adjusted EPS for 2021 was $3.05, an all-time

record and a 58% increase over 2020.

• Record sales of $4.8 billion drove adjusted EBITDA
of $581 million, the highest in company history.

• Working capital as a percentage of sales was

10.9%, the lowest in company history.

This has translated into stakeholder value as our
share price increased 39% from $40.28 to $55.95.
We increased our dividend for the 11th year in a row
and reduced net debt to adjusted EBITDA to 2.2x,
one year ahead of our expectations when we first
announced the Clariant Color acquisition.

We did this against a backdrop of the most
challenging business conditions in my time at
Avient. These included massive supply chain
disruptions and inflation, labor shortages and
navigating the ongoing COVID pandemic.

We accepted these challenges and delivered record
results in each of our three segments:

• Our Specialty Engineered Materials segment
delivered record operating income of $132M,
up 40% from 2020, driven by high demand
for our composites and other specialty
solutions serving the consumer and healthcare
end markets.

• Our Color, Additives and Inks segment grew
revenue 18% and operating income 34%.
Combined with $54M in realized synergies from
the Clariant Color integration, the segment
expanded operating income to over $300M for
the first time ever.

• Our Distribution segment achieved significant
revenue growth of 47% and operating income
expansion of 33%, despite material and pricing
pressures throughout the global supply chain.

Our differentiated performance in the face of
adversity is the culmination of a multi-year
strategy to transform our business and become a
truly global specialty formulator. This included a
technology portfolio overhaul that is now focused
on innovative sustainable solutions that our
customers and our world demand.

This has been the fastest growing part of our
portfolio over the last five years.

Revenue from Sustainable Solutions* 2016–2021

Lightweighting

Recycle Solutions

Eco-conscious

VOC Reduction

Sustainable
Infrastructure
Human Health &
Safety

Reduced Energy Use

Bio-polymers

$915M

$790M

n i c C A G R

2 % O r

$550M

$455M

$405M

$340M

2016

2017

2018

2019

2020PF**

2021

*Avient Sustainable Solutions definitions aligned with FTC 2012 Guide for the Use of Environmental
Marketing Claims (“Green Guides”)

**2020 is Pro forma to include full year of the Clariant Color business

Our shift to high-growth, less-cyclical end markets
was also important. 57% of our sales last year were
in Packaging, Healthcare and Consumer, up from
just 22% when our transformation began.

End Market Transformation*

(cid:25)(cid:31)

(cid:26)(cid:31)

(cid:27)(cid:31)

(cid:28)(cid:31)

(cid:29)(cid:31)

(cid:30)(cid:31)

(cid:31)

57%

Transportation
14%

Building &
Construction

43%

2006

21%

11%

10%

2021

*End market revenue as a percent of total

57%

Healthcare
15%

Packaging
19%

Consumer
23%

22%

10%

2006

2021

Annual Report | 2021

Our innovation pipeline is well aligned with the
megatrends that are shaping future product
development in these markets, and we expect
continued growth at Avient as a result.

Certainly, the integration of the Clariant Color
business also played an influential role in 2021.
As the largest acquisition in our history, it was
important that we get it right, and we have. I
continue to be extremely pleased with how well
our two companies have come together. More
importantly, our customers have too.

Yet behind all the records, headlines and
performance metrics, as always, is our people.
Strategy and execution are important, but culture is
everything. Our global associates have built a truly
exceptional culture at Avient. It’s one that is inclusive
and increasingly diverse. It’s innovative and bold, as
our people bring ideas to life for a greater good and
a more circular economy. It’s also a culture that loves
to win, which is exactly what we are doing.

Knowing this, and recognizing the many challenges
we overcame in 2021, it was with great pride that in
December Avient was again re-certified as a Great
Place to Work®!

At Avient we embrace sustainability with four pillars
of focus: People, Products, Planet and Performance.
In 2021, we made incredible strides in each area,
and I’m proud of the world-class sustainable
organization we have created to take care of and
value our employees and customers, preserve our
planet’s precious natural resources and deliver for
all stakeholders.

In closing, I would like to thank our customers for
their trust in Avient during these challenging times,
our Board of Directors for their ongoing guidance
and insight, our management team for their
leadership, and all the Avient associates around the
world for their passion and commitment.

We are Avient. We have purpose. We have
momentum. And it remains an honor to serve all of
our many stakeholders as Chairman, President and
CEO of this great company!

Robert M. Patterson
Chairman, President and CEO

United States
Securities and Exchange Commission

Washington, DC 20549

FORM 10-K

☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission file number 1-16091

Avient Corporation

(Exact name of registrant as specified in its charter)

Ohio
(State or other jurisdiction

of incorporation or organization)
33587 Walker Road,
Avon Lake, Ohio
(Address of principal executive offices)

34-1730488
(I.R.S. Employer Identification No.)

44012
(Zip Code)

Registrant’s telephone number, including area code

(440) 930-1000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Common Shares, par value $.01 per share

Trading Symbol
AVNT

Name of each exchange on which registered

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:
None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑

No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐

No ☑

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes ☑

No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to
Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required
to submit such files). Yes ☑

No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and
"emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Non-accelerated filer

☒
☐

Accelerated filer

Smaller reporting company

Emerging growth company

☐
☐

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with
any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting
firm that prepared or issued its audit report. ☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐

No ☑

The aggregate market value of the registrant’s outstanding common shares held by non-affiliates on June 30, 2021, determined using a per
share closing price on that date of $49.16, as quoted on the New York Stock Exchange, was $4.5 billion.

The number of shares of common shares outstanding as of February 4, 2022 was 91,604,913.

DOCUMENTS INCORPORATED BY REFERENCE

Part III of this Annual Report on Form 10-K incorporates by reference certain information from the registrant’s definitive Proxy Statement with
respect to the 2022 Annual Meeting of Shareholders.

AVIENT CORPORATION

THIS PAGE INTENTIONALLY LEFT BLANK

PART I

CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS

In this Annual Report on Form 10-K, 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
future performance; estimated capital
changes in raw material costs, product pricing or product demand;
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 any 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
environmental matters;

to contingencies such as litigation and

our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;

information systems failures and cyberattacks;

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 this Annual Report on Form 10-K under Item 1A, “Risk Factors.”

in our plans and assumptions. Achievement of

We cannot guarantee that any forward-looking statement will be realized, although we believe we have been
to risks, uncertainties and
prudent
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 (SEC). 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.

future results is subject

1 AVIENT CORPORATION

ITEM 1. BUSINESS

Business Overview

Avient was formed as PolyOne Corporation on August 31, 2000 from the consolidation of The Geon Company
(Geon) and M.A. Hanna Company (Hanna). In 1948, B.F. Goodrich created a vinyl plastic division that was
subsequently spun off through a public offering in 1993, creating The Geon Company, a separate publicly-held
company. Hanna was formed in 1885 as a privately-held company and became publicly-held in 1927. In the
mid-1980s, Hanna began to divest its historic mining and shipping businesses to focus on polymers. Hanna
purchased its first polymer company in 1986 and completed its 26th polymer company acquisition in 2000.

On July 1, 2020, the Company completed its acquisition of the equity interests in the global color business of
Clariant AG, a corporation organized and existing under the laws of Switzerland (Clariant), and certain assets of
Clariant Chemicals (India) Limited, a public limited company incorporated in India and an indirect majority owned
subsidiary of Clariant (Clariant India). The business and assets are collectively referred to as Clariant Color and the
acquisitions are collectively referred to as the Clariant Color Acquisition. In connection with the completion of the
Clariant Color Acquisition and effective as of June 30, 2020,
the Company amended its existing Articles of
Incorporation to change its name to Avient Corporation. In conjunction with its rebranding and new name, the
Company also changed its ticker symbol from “POL” to “AVNT”, effective at the start of trading on July 13, 2020.

Avient Corporation is incorporated in Ohio and headquartered in Avon Lake, Ohio. We currently have 102
manufacturing sites and eight distribution facilities in North America, South America, Europe, the Middle East, Asia,
and Africa (EMEA). In 2021, we had sales of $4.8 billion, approximately 53% of which were to customers outside the
United States. Using our formulation expertise and operational capabilities, we create an essential link between
large chemical producers (our raw material suppliers) and designers, assemblers and processors of plastics (our
customers). We believe that our role in the value chain continues to become more vital as our customers
increasingly need reliable suppliers with a global reach and increasingly effective material-based solutions to
improve their products' sustainability appeal, performance, differentiation, profitability and competitive advantage.
Our goal
is to provide customers with specialized and sustainable materials and solutions through our global
footprint, broad market knowledge, technical expertise, product breadth, manufacturing operations, a fully integrated
information technology network and raw material procurement
leverage. Our end markets include consumer,
packaging, healthcare, industrial, transportation, building and construction, telecommunications and energy.

Polymer Industry Overview

Avient is a specialty formulator within the polymer industry. We have the scientific know-how in material science
required to bridge the large, commodity base resin producers and the companies who ultimately manufacture end
products utilizing formulated polymer materials.

Polymers are a class of organic materials that are generally produced by converting natural gas or crude oil
derivatives into monomers, such as ethylene, propylene, and styrene. These monomers are then polymerized into
chains called polymers, or plastic resin, such as polyethylene and polypropylene, in their most basic forms. Avient
does not produce commodity base resins. Rather, Avient sources various resins, polymers and additives, then
employs additional chemistry in formulating those materials into a highly engineered, unique material for a specific
use.

Thermoplastic polymers are characterized by their ability to be reshaped repeatedly into new forms after heat and
pressure are applied. Thermoplastics offer versatility and a wide range of applications. The major types of
thermoplastics include polyethylene, polypropylene, polystyrene, polyester and a range of specialized engineering
resins. Each type of thermoplastic has unique qualities and characteristics that make it appropriate for use in a
particular application.

Thermoplastic composites include base resins, but are combined with a structural filler such as glass, wood, carbon
or polymer fibers to enhance strength, rigidity and structure. Further performance can be delivered through an
engineered thermoplastic sheet or thick film, which may incorporate more than one resin formulation or composite in
multiple layers to impart additional properties such as gas barrier, structural integrity and lightweighting.

2 AVIENT CORPORATION

Thermoplastics and polymer composites are found in a variety of end-use products and markets,
including
packaging, building and construction, wire and cable, transportation, medical, furniture and furnishings, durable
goods, outdoor high performance equipment, electrical and electronics, adhesives, inks and coatings and fiber.
Each type of thermoplastic resin has to ultimately achieve unique characteristics (such as flexibility, strength or
durability) suitable for use in a particular end-use application. The formulation science and manufacturing processes
required to achieve those characteristics is the specialty role that Avient plays.

thermoplastics and composites serve to protect by providing electrical

For example, the packaging industry requires plastics that help keep food fresh and free of contamination while
providing a variety of options for product display, and offering advantages in terms of weight and user-friendliness.
In wire and cable,
flame
resistance, durability, water resistance, water swelling and color coding to engineered fibers, yarn products, wire
coatings and connectors. In the transportation industry, plastic has proven to be durable, lightweight and corrosion
resistant while offering fuel savings, design flexibility and high performance, often replacing traditional materials
such as metal and glass. In the medical industry, plastics are used for a vast array of devices and equipment,
including blood and intravenous bags, medical tubing, catheters, lead replacement for radiation shielding, clamps
and connectors to bed frames, curtains and sheeting, electronic enclosures and equipment housings. In the outdoor
high performance industry, plastic applications are used for components and colorants for all terrain vehicles and
reinforced polymers are used for various outdoor equipment and gear. In the electronics industry, plastic enclosures
and connectors not only enhance safety through electrical
insulation, but thermally and electrically conductive
plastics provide heat
transferring, cooling, anti-static, electrostatic discharge, and electromagnetic shielding
performance for critical applications including integrated circuit chip packaging.

insulation,

Various additives can also be formulated with a base resin and further engineered into a structure to provide them
with greater versatility and performance. Polymer formulations and structures have advantages over metals, wood,
rubber, glass and other traditional materials, which have resulted in the replacement of these materials across a
wide spectrum of applications. These specialized polymers offer sustainability and performance advantages
compared to traditional materials, including design freedom, processability, weight reduction, chemical resistance,
flame retardance and lower cost. Plastics are renowned for their durability, aesthetics, ease of handling and
recyclability. Avient’s strategy and investments are aligned to enable these important benefits, now and in the
future.

Avient Segments

We operate in three reportable segments: (1) Color, Additives and Inks; (2) Specialty Engineered Materials; and (3)
Distribution. Previously, Avient had four reportable segments. However, as a result of
the
Performance Products and Solutions segment (PP&S) on October 25, 2019, we have removed PP&S as a separate
operating segment and its results are presented as discontinued operations. Please see Note 3, Discontinued
Operations, to the accompanying consolidated financial statements for additional information.

the divestiture of

Our segments are further detailed in Note 15, Segment Information, to the accompanying consolidated financial
statements.

Competition

The production of plastics and the manufacturing of custom and proprietary formulated color and additives systems
for the plastics industry are highly competitive. Competition is based on service, performance, product innovation,
product recognition, speed, delivery, quality and price. The relative importance of these factors varies among our
products and services. Our competitors range from large international companies with broad product offerings to
local independent custom producers whose focus is a specific market niche or product offering.

The distribution of polymer resin is also highly competitive. Speed, service, reputation, product
line, brand
recognition, delivery, quality and price are the principal factors affecting competition. We compete against other
national
independent resin distributors in North America, along with other regional distributors. Growth in the
polymer distribution market is highly correlated with growth in the base polymer resins market. We believe that the
strength of our company name and reputation, the broad range of product offerings from our suppliers and our
speed and responsiveness, combined with the quality of products and agility of our distribution network, allow us to
compete effectively.

3 AVIENT CORPORATION

Raw Materials

The primary raw materials used by our manufacturing operations are polyolefin and other thermoplastic resins,
TiO2, inorganic and organic pigments and specialty additives. In general there is adequate supply and capacity to
serve our business. In 2021, we experienced certain supply disruptions, shortages, volume allocations and logistical
delays for some of these materials, none of which had a material impact on our business. See the discussion of
risks associated with raw material supply and costs in Item 1A, “Risk Factors."

Patents and Trademarks

We own and maintain a number of patents and trademarks in the United States and other key countries that
contribute to our competitiveness in the markets we serve because they protect our inventions and product names
against infringement by others. Patents exist for 20 years from filing date, and trademarks have an indefinite life
based upon continued use. While we view our patents and trademarks to be valuable because of the broad scope
of our products and services and brand recognition we enjoy, we do not believe that the loss or expiration of any
single patent or trademark would have a material adverse effect on our results of operations, financial position or
cash flows. Nevertheless, we have management processes designed to rigorously protect our inventions and
trademarks.

Seasonality

Sales of our products and services are typically seasonal, as demand has historically been slower in the third and
fourth calendar quarters of the year.

Working Capital Practices

Our products are generally manufactured with a short turnaround time, and the scheduling of manufacturing
activities from customer orders generally includes enough lead time to assure delivery of an adequate supply of raw
materials. We offer payment terms to our customers that are competitive. We generally allow our customers to
return merchandise if pre-agreed quality standards or specifications are not met; however, we employ quality
assurance practices that seek to minimize customer returns.

Significant Customers

No customer accounted for more than 3% of our consolidated revenues in 2021 and we do not believe we would
suffer a material adverse effect to our consolidated financial statements if we were to lose any single customer.

Research and Development

We have substantial technology and development capabilities, powered by approximately 1,000 associates serving
in technology capacities, 100 of whom have PhD level educations. Our efforts are largely devoted to developing
new product formulations to address evolving market and sustainability needs. We do this by providing quality
technical services to evaluate alternative raw materials, assuring the continued success of our products for
customer applications, providing technology to improve our products, processes and applications and providing
support to our manufacturing plants for cost reduction, productivity and quality improvement programs. We operate
research and development centers that support our commercial development activities and manufacturing
operations. These facilities are equipped with state-of-the-art analytical, synthesis, polymer characterization and
testing equipment, along with pilot plants and polymer manufacturing operations that simulate specific production
processes. This allows us to rapidly translate new technologies into new products, helping us advance a more
circular economy with reduced carbon footprint. Our investment in product research and development was $83.2
million in 2021, $59.8 million in 2020, and $50.6 million in 2019.

Methods of Distribution

We sell products primarily through direct sales personnel, distributors, including our Distribution segment, and
commissioned sales agents. We primarily use truck carriers to transport our products to customers, although some
customers pick up product at our manufacturing facilities or warehouses. We also ship some of our manufactured
products to customers by rail.

4 AVIENT CORPORATION

Human Capital Resources

“People” is the first of Avient’s four cornerstones of sustainability (People, Products, Planet and Performance),
which, together with our core values and our four-pillar strategy, form the framework of our company culture. The
success and growth of our business depend in large part on our ability to attract, develop and retain a diverse
population of talented and high-performing employees at all levels of our organization, including the individuals who
comprise our global workforce as well as our executive officers and other key personnel.

We have developed key recruitment and retention strategies, objectives and measures that guide our human capital
management approach as part of the overall management of our business. These strategies, objectives and
measures are advanced through a number of programs, policies and initiatives, as described below.

As of December 31, 2021, Avient employed approximately 8,700 people, 34% of which are located in the U.S. and
Canada, 34% were located in Europe, Middle East, and Africa, 25% were located in Asia, and 7% were located in
Latin America.

Safety and Health

The top priority at Avient is the safety and health of our associates, and our ultimate goal is to operate injury free.
Progress toward this goal is measured at the business unit and regional levels, communicated globally, and linked
to a number of recognition mechanisms. In 2021, we maintained world-class performance for our industry, with a
recordable incident rate of 0.55 per 100 full-time workers per year as compared to industry average of 3.50 in 2020.
We continue to be recognized as an American Chemistry Counsel Responsible Care® company and set high
standards for our operations as we strive to achieve our goal of zero recordable injuries.

Employee Recruitment

We actively recruit and seek the best and the brightest talent through numerous channels, including job fairs, online
industry associations, referrals and campus recruiting. We recruit at more than 25 leading
talent networks,
universities around the world and hire approximately 140 new graduates each year as full-time, co-ops or interns.
We have launched seven highly coveted rotational development roles—from marketing to operational excellence to
finance to IT—where newly hired associates rotate through various departments and jobs for up to two years,
contributing their skills while also building diverse, well-rounded knowledge of our Company and its many
stakeholders. We leverage global processes and systems to create a positive candidate experience with
opportunities for both entry level and experienced hires.

Training and Development

Training and development opportunities are provided to all
full-time and part-time associates through global
programs and technology, to ensure a consistent and high-quality experience for all associates. Examples of
training and development opportunities available to our employees include: regular performance feedback, career
development discussions with managers, training and professional development courses through Avient Academy,
and access to a global online learning platform.

Avient also offers nomination-based leadership development programs, such as NextGen, Elevate, Engage, and
Lean Six Sigma, as well as Core Leadership, an open-enrollment program for leaders around the globe. Some of
the topics covered by our training programs include: leadership development, safety, Lean Six Sigma concepts,
technical and operational skills, and ethics and compliance.

Diversity and Inclusion

At Avient, we recognize the immense benefits that a diverse team brings to our organization, including delivering
better business outcomes. Our talented people leverage their diverse backgrounds and skills toward a common
goal: meeting the needs of the present without compromising the ability of future generations to do the same. This
spirit of inclusive collaboration can be felt throughout our Company. It drives the innovation that earns us leadership
positions in the markets we serve and underpins the high level of respect we show each other every day.

Our commitment to diversity begins at the highest levels of our organization, as evidenced by the fact that 42% of
our Board of Directors are female or racially diverse. From a management perspective, 64% of our CEO's direct
reports are female, racially or ethnically diverse, which we believe sets the right tone and expectation for diversity
and inclusion within the Company.

More broadly within the Company, our diversity and inclusion approach is fostered by multiple Employee Resource
Groups that are driving improvements and opening opportunities throughout our organization. The vision that
guides our collective efforts is consistent and unwavering: to be the Company of choice for all. It is from this vision

5 AVIENT CORPORATION

that our Employee Resource Groups were born and flourish today. Each group has its own mission and supporting
activities, and their efforts coalesce to help educate and inspire our global workforce and fortify sustainable
business practices.

Our Employee Resource Groups include: PRIDE at Avient (which is working to maintain a safe and accepting
environment that enables LGBTQ+ associates to perform to their fullest potential and contribute to the success of
our company), HYPE (which stands for Harnessing Young Potential Energy and is building a collaborative network
of Avient’s young professionals), and LEAD by Women (which promotes diversity and inclusion by increasing
access to the tools and resources necessary to build leadership skills and accelerate careers). In 2021, we
launched our fourth Employee Resource Group called EMBRACE (which focuses on understanding and valuing the
many diverse cultures and backgrounds of our associates).

The executive leadership team oversees our diversity and inclusion initiatives, which ensure that we have
leadership accountability in advancing diversity and inclusion. In addition to bi-annual reviews with the leadership
team, Avient has implemented recruiting guidelines to expand our diverse talent pipeline, with at least one-third of
candidates being female or a U.S. minority.

Other initiatives, including Mentoring at Avient and campus partnerships, are vital for progress in our diversity and
inclusion journey. We require equality of opportunity for all qualified individuals in accordance with applicable laws.
Decisions on hiring, promotion, development, compensation or advancement are based solely on a person’s
qualifications, abilities, experience and performance, except where local law requires us to take actions to increase
employment opportunities for a specific group. The Avient Ethics Hotline serves as a mechanism for associates to
anonymously report any perceived concerns regarding these topics.

Compensation and Benefits Programs

We strive to remain competitive in the global marketplace and provide foundational rewards to attract and retain top
talent. In general, our overall philosophy on compensation encompasses the following principles:

•

provide all
interests through the use of base and annual incentive pay programs;

levels of associates with a compensation package that aligns Avient’s and the associates’

• maintain a competitive pay program that serves to attract, retain, motivate and reward associates; and

•

award individual pay commensurate with experience, level of responsibility, and marketability.

Associate Benefits: Awards and Recognition Programs

importantly, acted upon to make
Our ongoing associate feedback is highly valued, discussed, and most
improvements. This includes our culture and unique benefits we offer. In 2021, we continued to embrace and direct
workplace flexibility and work from home arrangements to combat the spread of COVID-19 and protect our people.
In addition, we continue to offer our global benefit of community service hours, where each associate is provided 16
hours of paid time off each year to participate in activities to support and help create more sustainable communities.
We celebrate, reward and share our associates’ great work through our recognition programs, including those that
all associates can earn for their extra effort and impact, as well as those that are specific to a position or role in the
company, such as sales excellence.

A Great Place to Work®

To gauge how associates at Avient feel about our culture, we conduct employee engagement surveys. Last year,
our first full year as Avient, we surveyed employees in over 40 countries, and more than 130 locations participated,
providing actionable feedback to support our employee engagement efforts. Based on positive feedback from our
employees, we proudly were recognized as a Great Place to Work® for the third consecutive survey taken.

Environmental, Health and Safety and Other Regulation

laws and regulations that apply to the production, use and sale of
We are subject to various environmental
chemicals, emissions into the air, discharges into waterways and other releases of materials into the environment,
and the generation, handling, storage, transportation, treatment and disposal of waste material. We endeavor to
ensure the safe and lawful operation of our facilities in the manufacture and distribution of products, and we believe
we are in material compliance with all applicable laws and regulations.

We maintain a disciplined environmental and occupational safety and health compliance program and conduct
periodic internal and external regulatory audits at our facilities to identify and prevent potential environmental
exposures, including compliance matters and operational risk reduction opportunities. This effort can result in

6 AVIENT CORPORATION

process or operational modifications, the installation of pollution control devices or cleaning up grounds or facilities.
We believe that we are in material compliance with all applicable requirements.

We are strongly committed to safety as evidenced by our low injury incidence rate of 0.55 per 100 full-time workers
per year in 2021 and 0.5 in 2020. The 2020 average injury incidence rate for our NAICS Code (326 Plastics and
Rubber Products Manufacturing) was 3.50. We hold the American Chemistry Council's certification as a
Responsible Care Management System® (RCMS) company. Certification was granted based on Avient's
conformance to the RCMS's comprehensive environmental health, safety and security requirements. The RCMS
certification affirms the importance Avient places on having world-class environmental, health, safety and security
performance.

In our operations, we must comply with product-related governmental
law and regulations affecting the plastics
industry generally and also with content-specific law, regulations and non-governmental standards. We believe that
compliance with current governmental laws and regulations and with non-governmental content-specific standards
will not have a material adverse effect on our financial position, results of operations or cash flows. The risk of
additional costs and liabilities, however, is inherent in certain plant operations and certain products produced at
these plants, as is the case with other companies in the plastics industry. Therefore, we may incur additional costs
or liabilities in the future. Other developments, such as increasingly strict environmental, safety and health laws,
regulations and related enforcement policies, including those under the European Union Restriction of the Use of
Certain Hazardous Substances Directive (RoHS), Registration, Evaluation, Authorization and Restriction of
Chemicals (REACH), the Dodd-Frank Wall Street Reform and Consumer Protection Act (covering Conflict Minerals),
and the Consumer Product Safety Improvement Act, the implementation of additional content-specific standards,
discovery of unknown conditions, and claims for damages to property, persons or natural resources resulting from
plant emissions or products, could also result in additional costs or liabilities.

Refer to Note 12, Commitments and Contingencies, to the accompanying consolidated financial statements for
investigation and remediation matters and Item 1A. Risk Factors for discussion of
discussion of environmental
matters pertaining to other regulation.

International Operations

Our international operations are subject to a variety of risks, including currency fluctuations and devaluations,
exchange controls, currency restrictions and changes in local economic conditions. While the impact of these risks
is difficult to predict, any one or more of them could adversely affect our future operations. For more information
about the noted risks, see Item 1A. "Risk Factors." For more information about our international operations, see
Note 15, Segment Information, to the accompanying consolidated financial statements.

Where You Can Find Additional Information

Our principal executive offices are located at 33587 Walker Road, Avon Lake, Ohio 44012, and our telephone
number is +1 (440) 930-1000. We are subject to the information reporting requirements of the Securities Exchange
Act of 1934 (the Exchange Act), and, in accordance with these requirements, we file annual, quarterly and other
reports, proxy statements and other information with the SEC relating to our business, financial results and other
matters.

Our internet address is www.avient.com. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d)
of the Exchange Act are available, free of charge, on our website (select Investors and then SEC Filings) or upon
written request, as soon as reasonably practicable after we electronically file or furnish them to the SEC. The
contents of our website are not part of this Annual Report on Form 10-K, and the reference to our website does not
constitute incorporation by reference into this Form 10-K of the information contained at that site.

7 AVIENT CORPORATION

ITEM 1A. RISK FACTORS

The following are certain risk factors that could affect our business, results of operations, financial position or cash
flows. Although the risks are organized by headings and each risk is described separately, many of the risks are
interrelated. These risk factors should be considered along with the forward-looking statements contained in this
Annual Report on Form 10-K because these factors could cause our actual results or financial condition to differ
materially from those projected in forward-looking statements. You should not interpret the disclosure of any risk
factor to imply that the risk has not already materialized. The following discussion is not an all-inclusive listing of
risks, although we believe these are the more material risks that we face. If any of the following occur, our business,
results of operations, financial position or cash flows could be adversely affected.

Global Operating Risks

Our operations could be adversely affected by various risks inherent in conducting operations worldwide.

We conduct a substantial portion of our business outside the U.S., with approximately 53% of our sales in foreign
countries. We currently have many facilities located outside the U.S., as detailed in Item 2. “Properties.” Accordingly,
our business is subject to risks related to the differing legal, political, social and regulatory requirements, and
economic conditions of many jurisdictions. Risks inherent in international operations include, but are not limited to,
the following:

•

changes in local government regulations and policies including, but not limited to, duty or tariff restrictions,
foreign currency exchange controls or monetary policy, repatriation of earnings, expropriation of property,
investment limitations and tax policies;

political and economic instability and disruptions, including labor unrest, withdrawal or renegotiation of trade
agreements, natural disasters, major public health issues, pandemics, civil strife, acts of war, insurrection
and terrorism;

legislation that regulates the use of chemicals;

disadvantages of competing against companies from countries that are not subject to U.S. laws and
regulations, including the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act;

compliance with international trade laws and regulations, including export control and economic sanctions;

difficulties in staffing and managing multi-national operations;

limitations on our ability to enforce legal rights and remedies;

reduced protection of intellectual property rights;

other risks arising out of foreign sovereignty over the areas where our operations are conducted; and

increasingly complex laws and regulations concerning privacy and data security, including, but not limited
to, the European Union's General Data Protection Regulation.

We could be adversely affected by violations of the FCPA, UK Bribery Act and similar worldwide anti-bribery laws,
as well as export controls and economic sanction laws. The FCPA, UK Bribery Act and similar anti-bribery laws in
other jurisdictions generally prohibit companies and their intermediaries from making improper payments to
government officials for the purpose of obtaining or retaining business. Our policies mandate compliance with these
laws. We operate in many parts of the world that have experienced governmental corruption to some degree and, in
certain circumstances, strict compliance with anti-bribery laws may conflict with local customs and practices. We
cannot assure you that our internal controls and procedures will always protect us if reckless or criminal acts are
committed by our employees or agents. If we are found to be liable for FCPA, UK Bribery Act, export control or
sanction violations, we could suffer from criminal or civil penalties or other sanctions, including loss of export
privileges or authorization needed to conduct aspects of our international business, which could have a material
adverse effect on our business.

Any of these risks could have an adverse effect on our international operations by reducing demand for our
products.

8 AVIENT CORPORATION

Business Risks

Demand for and supply of our products and services have in the past been and may in the future be
adversely affected by several factors, some of which we cannot predict or control.

Several factors have in the past and may in the future affect the demand for and supply of our products and
services, including:

•

economic downturns or other volatility in the significant end markets that we serve;

product obsolescence or technological changes that unfavorably alter the value/cost proposition of our
products and services;

competition from existing and unforeseen polymer and non-polymer based products;

declines in general economic conditions or
domestically and globally, which could impact our customers’ ability to pay amounts owed to us;

reductions in industrial production growth rates, both

changes in environmental regulations that limit our ability to sell our products and services in specific
markets;

changes in laws and regulations regarding plastic materials; and

inability to obtain raw materials or supply products to customers due to factors such as supplier work
stoppages, supply shortages, plant outages or regulatory changes that may limit or prohibit overland
transportation of certain hazardous materials and exogenous factors, like severe weather.

If any of these events occur in the future, the demand for and supply of our products and services could suffer and
potentially lead to asset impairment or otherwise adversely affect our results.

Our manufacturing operations are subject to hazards and other risks associated with specialty formulation
and the related storage and transportation of raw materials, products and wastes.

The occurrence of an operating problem at our facilities may have a material adverse effect on the productivity and
profitability of a particular manufacturing or distribution facility or on our operations as a whole, during and after the
period of these operating difficulties. Operating problems may cause personal injury and/or loss of life, customer
attrition and severe damage to or destruction of property and equipment and environmental damage. We are
subject to present claims and potential future claims with respect to workplace exposure, workers’ compensation
and other matters. Our property and casualty insurance, which we believe are of the types and in the amounts that
are customary for the industry, may not fully insure us against all potential hazards that are incident to our business
or otherwise could occur.

Environmental, health and safety laws and regulations impact our operations and financial statements.

Our operations on, and ownership of, real property are subject to environmental, health and safety laws and
regulations at the national, state and local governmental
levels (including, but not limited to, the Restriction of
Hazardous Substances (RoHS) and the Consumer Product Safety Improvement Act of 2008). The nature of our
business exposes us to compliance costs and risks of liability under these laws and regulations due to the
production, storage, transportation, recycling or disposal and/or sale of materials that can cause contamination and
other harm to the environment or personal
injury if they are improperly handled and released. Environmental
compliance requirements imposed on us and our vendors may significantly increase the costs of these activities
involving raw materials, energy, finished products and wastes. We may incur substantial costs, including fines,
criminal or civil sanctions, damages, and remediation costs, or experience interruptions in our operations for
violations of these laws.

Electricity, fuel, logistics and raw material costs could cause volatility in our results.

The cost of our electricity, fuel, logistics and raw materials may not correlate with changes in the prices we receive
for our products, either in the direction of the price change or in absolute magnitude. Electricity and raw materials
costs represent a substantial part of our manufacturing costs. Most of the raw materials we use are commodities
and the price of each can fluctuate widely for a variety of reasons, including changes in availability because of major
capacity additions or reductions or significant facility operating problems. Other external factors beyond our control
can also cause fluctuations in raw materials prices, which could negatively impact demand for our products and
cause volatility in our results.

9 AVIENT CORPORATION

We face competition from other companies.

We encounter competition in price, payment terms, delivery, service, performance, product innovation, product
recognition and quality, depending on the product involved.

We expect that our competitors will continue to develop and introduce new and enhanced products, which could
cause a decline in the market acceptance of our products. In addition, our competitors could cause a reduction in
the selling prices of some of our products as a result of intensified price competition. Competitive pressures could
also result in the loss of customers.

Cybersecurity breaches, global information systems security threats and more sophisticated and targeted
computer crime could pose a risk to our systems, networks and products, which could harm our business.

We depend on integrated information systems to conduct our business, including communicating with employees
and customers, ordering and managing materials from suppliers, shipping products to customers, and analyzing
and reporting results of operations. In addition, we store sensitive data, including proprietary business information,
intellectual property and confidential employee or other personal data, on our servers and databases.
Cybersecurity breaches, global information systems security threats and more sophisticated and targeted computer
crime pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our
data and communications. We continue to update our infrastructure, security tools, employee training and
processes to protect against security incidents, including both external and internal threats, and to prevent their
recurrence; however, our systems, networks and products may nevertheless be vulnerable to advanced persistent
threats or other types of system failures. Depending on their nature and scope, such threats and system failures
could potentially lead to the compromising of confidential
information and communications, improper use of our
systems and networks, manipulation and destruction of data, defective products, production downtimes and
operational disruptions, which in turn could cause customers to cancel orders or otherwise adversely affect our
reputation, competitiveness and results of operations. We have experienced cybersecurity incidents in the past and
we could experience similar incidents in the future. To date, no cybersecurity incident or attack has had a material
impact on our business or consolidated financial statements.

We are subject to risks associated with potential climate change legislation, regulation and international
agreements.

Carbon emissions have become the subject of an increasing amount of state and local, regional, national, and
international attention. Growing concerns about climate change may result in the imposition of additional regulations
or restrictions to which we may become subject. These future regulatory developments related to climate change
are likely and could increase our operating and compliance costs, thereby impacting our business and consolidated
financial statements.

Capital and Credit Risks

Disruptions in the global credit, financial and/or currency markets could limit our access to credit or
otherwise harm our financial results, which could have a material adverse impact on our business.

Global credit and financial markets experience volatility, including volatility in security prices, liquidity and credit
availability, declining valuations of certain investments and significant changes in the capital and organizational
structures of certain financial institutions. Market conditions may limit our ability to access the capital necessary to
grow and maintain our business. Accordingly, we may be forced to delay raising capital, issue shorter tenors than
we prefer or pay unattractive interest rates, which could increase our interest expense, decrease our profitability and
significantly reduce our financial flexibility.

We are exposed to fluctuations in foreign currency exchange rates. Any significant change in the value of the
currencies of the countries in which we do business against the U.S. dollar, whether precipitated by governmental
monetary policy or otherwise, could affect our ability to sell products competitively and control our cost structure,
which could have a material adverse effect on our business, financial condition and results of operations. For
additional detail related to this risk, see Item 7A, "Quantitative and Qualitative Disclosures About Market Risk."

The agreements governing our debt,
including our revolving credit facility, term loan and other debt
instruments, contain various covenants that limit our ability to take certain actions and in certain
circumstances require us to meet financial maintenance tests, failure to comply with which could have a
material adverse effect on us.

The agreements governing our senior secured revolving credit facility and our senior secured term loan, and the
indentures and credit agreements governing our other debt, contain a number of customary restrictive covenants
that, among other things, limit our ability to: sell or otherwise transfer assets, including in a spin-off, incur additional

10 AVIENT CORPORATION

debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay
dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create
dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business
we conduct.

In addition, depending on our level of borrowing, our revolving credit facility requires us to comply under certain
circumstances with specific financial tests, under which we are required to achieve certain or specific financial and
operating results. Our ability to comply with these provisions may be affected by events beyond our control. A
breach of any of these covenants would result in a default under such agreements and instruments, which in certain
circumstances could be a default under all of these agreements and instruments. In the event of any default, our
lenders could elect to declare all amounts borrowed under the agreements, together with accrued interest thereon,
to be due and payable. In such event, we cannot assure that we would have sufficient assets to pay debt then
outstanding under the agreements governing our debt.

Furthermore, certain of these agreements condition our ability to obtain additional borrowing capacity, engage in
certain transactions or take certain other actions, on our achievement of certain or specific financial and operating
results, although our failure to achieve such results would not result in a default under such agreements. Any future
refinancing of our senior secured revolving credit facility or other debt may contain similar restrictive covenants.

To service our indebtedness, we require a significant amount of cash.

Our ability to pay interest on our debt and to satisfy our other debt obligations depends in part upon our future
financial and operating performance and that of our subsidiaries, and upon our ability to renew or refinance
borrowings. Prevailing economic conditions and financial, business, competitive, legislative, regulatory and other
factors, many of which are beyond our control, affect our ability to make these payments. While we believe that
cash flow from our current level of operations, available cash and available borrowings under our revolving credit
facility provide adequate sources of liquidity, a significant drop in operating cash flow resulting from economic
conditions, competition or other uncertainties beyond our control could create the need for alternative sources of
liquidity. If we are unable to generate sufficient cash flow to meet our debt service obligations, we will have to
pursue one or more alternatives, such as reducing or delaying capital or other expenditures, refinancing debt,
selling assets, or raising equity capital.

We have a significant amount of goodwill, and any future goodwill impairment charges could adversely
impact our results of operations.

As of December 31, 2021, we had goodwill of $1,286.4 million. The future occurrence of a potential indicator of
impairment, such as a significant adverse change in business climate, an adverse action or assessment by a
regulator, unanticipated competition, a material negative change in relationships with customers, strategic decisions
made in response to economic or competitive conditions could result in goodwill impairment charges, which could
adversely impact our results of operations. Based on our 2021 goodwill impairment test, performed as of October 1,
2021, no reporting units were identified as being at risk of future impairment. For additional information, see Note 4,
Goodwill and Intangible Assets, to the accompanying consolidated financial statements and “Critical Accounting
Policies and Estimates” included in Item 7, "Management’s Discussion and Analysis of Financial Condition and
Results of Operations.”

COVID-19 Pandemic Risks

The COVID-19 pandemic has had, and may continue to have, an adverse impact on our business.

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 customers, employees, supply chain, and distribution network. In response to the
pandemic, we implemented changes in our business designed to protect
the health and well-being of our
employees and customers and to support appropriate physical distancing and other health and safety protocols. We
implemented remote, alternate and flexible work arrangements where possible, including implementing split shifts at
facilities and remote work options for non-essential on-site functions, enhanced cleaning and sanitary procedures,
implemented domestic and international
implemented return to work and visitor screening
protocols, and postponed or canceled hosting or attending large events. 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 could impact the stability of the
economic recovery and growth. The extent to which our future 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.

travel restrictions,

11 AVIENT CORPORATION

The COVID-19 pandemic has in the past and could in the future negatively impact our business, financial condition
and results of operations in a number of ways, including, but not limited to:

•

shutdowns or slowdowns of our production facilities;

disruptions in our supply chain and our ability to obtain raw materials, packaging and other sourced
materials due to labor shortages, governmental restrictions or the failure of our suppliers, distributors or
manufacturers to meet their obligations to us;

increases in raw material and commodity costs;

the inability of a significant portion of our workforce, including our management team, to work as a result of
illness or government restrictions; and

reduced liquidity of customers, which could negatively impact the collectability of outstanding receivables
and our cash flows.

The extent to which our business, results of operations, financial position or cash flows may ultimately be adversely
impacted by the COVID-19 pandemic will depend largely on these future developments, which are highly uncertain
and cannot be accurately predicted. The impact of the COVID-19 pandemic may also exacerbate other risks and
uncertainties described in this "Risk Factors" section, any of which could have a material effect on us.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

Headquartered in Avon Lake, Ohio, we operate globally with principal locations consisting of 102 manufacturing
sites and eight distribution facilities in North America, South America, Europe, the Middle East, Asia, and Africa. We
own the majority of our manufacturing sites and lease our distribution facilities. We believe that the quality and
production capacity of our facilities is sufficient to maintain our competitive position for the foreseeable future. The
following table identifies the principal facilities of our segments:

12 AVIENT CORPORATION

Specialty Engineered
Materials

Color, Additives and Inks

1. Birmingham, Alabama

1. Glendale, Arizona

30. Toronto, Canada

59. Santa Clara, Mexico

2. Englewood, Colorado

2. & 3. Phoenix, Arizona (c)

31. Maipu, Chile

60. Toluca, Mexico

Distribution

1. Rancho Cucamonga,
California
2. Chicago, Illinois

3. Montrose, Colorado

4. Bethel, Connecticut

32. Chuzhou, China

61. Auckland, New Zealand

3. Eagan, Minnesota

4. North Haven, Connecticut

5. Dalton, Georgia

33. Guangzhou, China

62. Karachi, Pakistan

4. Edison, New Jersey

5. McHenry, Illinois

6. Kennesaw, Georgia

34. Pudong, China

63. Lahore, Pakistan

5. Statesville, North Carolina

6. Winona, Minnesota

7. Elk Grove Village, Illinois

35. & 36. Shanghai, China
(d)

64. Lima, Peru

6. Elyria, Ohio

7. Hickory, North Carolina

8. West Chicago, Illinois

37. Suzhou, China

65. Konstantynow, Poland

7. La Porte, Texas

8. Avon Lake, Ohio

9. La Porte, Indiana

38. Tianjin, China

66. Kutno, Poland

8. Brampton, Ontario,
Canada

9. Hatfield, Pennsylvania

10. Lewiston, Maine

39. Cota, Colombia

67. Jeddah, Saudi Arabia

(8 Distribution Facilities)

10. Changzhou, China

11. Holden, Massachusetts

40. Aland, Finland

68. Riyadh, Saudi Arabia

11. Shenzhen, China

12. Albion, Michigan

41. Cergy, France

69. Yanbu, Saudi Arabia

12. Suzhou, China

13. Minneapolis, Minnesota

42. Tossiat, France

70. Jurong, Singapore

13. Gaggenau, Germany

14. St. Louis, Missouri

43. Ahrensburg, Germany

71. Randburg, South Africa

14. Melle, Germany

15. Lockport, New York

44. Diez, Germany

72. Alicante, Spain

15. Leeuwarden, Netherlands

16. Mooresville, North Carolina

45. Lahnstein, Germany

73. Barcelona, Spain

16. Barbastro, Spain

17. Berea, Ohio

17. Istanbul, Turkey

18. Massillon, Ohio

18. Leek, United Kingdom

19. North Baltimore, Ohio

Shanghai, China (b)

20. Norwalk, Ohio

46. Guatemala City,
Guatemala

47. Gyor, Hungary

48. Kalol, India

49. Pune, India

74. Pamplona, Spain

75. Sant Andreu, Spain

76. Malmoe, Sweden

77. Taoyuan, Taiwan

Pune, India (a)

21. Lehigh Valley, Pennsylvania

50. Rania, India

78. Bangkok, Thailand

Pamplona, Spain (a)

22. Mountain Top, Pennsylvania

51. Vashere, India

79. Phan Thong, Thailand

(18 Manufacturing Plants)

23. Vonore, Tennessee

52. Tangerang, Indonesia

80. Gazientep, Turkey

24. Winchester, Virginia

53. Naas, Ireland

81. Gebze, Turkey

25. Lomas de Zamora, Argentina

54. Lomagna, Italy

82. Barnsley, United Kingdom

26. Assesse, Belgium

55. Merate, Italy

83. Knowsley, United Kingdom

27. Louvain-La-Nueve, Belgium

56. Milan, Italy

84. Thuan An, Vietnam

28. Itupeva, Brazil

29. Suzano, Brazil

57. Pogliano, Italy

(84 Manufacturing Plants)

58. Butterworth, Malaysia

(a) Facility is not included in manufacturing plants total as it is also included as part of another segment.
(b) Facility is not included in manufacturing plants total as it is a design center/lab.
(c) There are two manufacturing plants located in Phoenix, Arizona.
(d) There are two manufacturing plants located in Shanghai, China.

ITEM 3. LEGAL PROCEEDINGS

Information regarding certain legal proceedings can be found in Note 12, Commitments and Contingencies, to the
accompanying consolidated financial statements and is incorporated by reference herein.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

13 AVIENT CORPORATION

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

Executive officers are elected by our Board of Directors to serve one-year terms. The following table lists the name
of each person serving as an executive officer of the Company, their age, and position with the Company as of
February 4, 2022.

Name

Robert M. Patterson

Jamie A. Beggs

Cathy K. Dodd

Michael A. Garratt

Lisa K. Kunkle

M. John Midea, Jr.

Woon Keat Moh

Chris L. Pederson

Vinod Purayath, PhD

Joel R. Rathbun

João José San Martin Neto

Age

Position

Chairman, President and Chief Executive Officer

Senior Vice President, Chief Financial Officer

Senior Vice President, President of Distribution

Senior Vice President, President Color, Additives and Inks, EMEA

Senior Vice President, General Counsel and Secretary

Senior Vice President, Global Operations and Process Improvement

Senior Vice President, President of Color, Additives and Inks, Americas and Asia

Senior Vice President, President of Specialty Engineered Materials

Senior Vice President, Chief Technology Officer

Senior Vice President, Mergers & Acquisitions

Senior Vice President, Chief Human Resources Officer

Robert M. Patterson: Chairman, President and Chief Executive Officer, 2016 to date. President and Chief Executive
Officer, 2014 to 2016. Executive Vice President and Chief Operating Officer, 2012 to 2014. Executive Vice President
and Chief Financial Officer, 2011 to 2012. Senior Vice President and Chief Financial Officer, 2008 to 2011. Vice
President and Treasurer of Novelis, Inc. (an aluminum rolled products manufacturer) from 2007 to 2008. Vice
President, Controller and Chief Accounting Officer of Novelis from 2006 to 2007. Mr. Patterson served as Vice
President and Segment Chief Financial Officer, Thermal and Flow Technology Segments of SPX Corporation (a
multi-industry manufacturer and developer) from 2005 to 2006 and as Vice President and Chief Financial Officer,
Cooling Technologies and Services of SPX from 2004 to 2005.

Jamie A. Beggs: Senior Vice President, Chief Financial Officer, 2020 to date. Senior Vice President and Chief
Financial Officer of Hunt Consolidated, Inc. (a diversified holding company focused primarily in the energy industry)
from 2017 through 2019. Vice President and Treasurer at Celanese Corporation (a global technology leader in the
production of specialty materials and chemical products) from 2015 to 2017. Chief Financial Officer, Material
Solutions at Celanese Corporation from 2011 to 2015. Prior to 2011, Ms. Beggs worked in various roles of
increasing responsibility at Celanese Corporation in both business and finance from May 2007.

Cathy K. Dodd: Senior Vice President, President of Distribution, 2020 to date. Senior Vice President, Chief
Commercial Officer from 2020 to 2020. Vice President, Marketing from 2014 to 2020. Director of Downstream
Engagement and Design and Strategic Account Executive, Retail at Eastman Chemical Company (a global
specialty chemical company that produces a broad range of advanced materials, additives and functional products,
specialty chemicals, and fibers) from 2010 to 2014.

Michael A. Garratt: Senior Vice President, President Color, Additives and Inks, EMEA, 2020 to present. Senior Vice
President, Chief Commercial Officer, 2016 to 2020. Senior Vice President, President of Performance Products and
Solutions, 2013 to 2016. President, Marmon Utility (a manufacturer of medium-high voltage utility, subsea and
down-hole power cables and molded insulator systems) from 2011 to 2013. Chief Operating Officer, Excel Polymers
(a custom thermoset rubber formulator) from 2009 to 2010. Vice President and General Manager - Americas
Compounding and Performance Additives, Excel Polymers from 2009 to 2009. Vice President and General Manager
- Industrial and Consumer, Excel Polymers from 2005 to 2009. From 1996 to 2005, Mr. Garratt worked for DuPont
Dow Elastomers, a joint venture of Dupont and Dow (global manufacturers of engineered thermoset rubber and
thermoplastic elastomer materials) in market development and product management positions, culminating in a
regional commercial leadership role for EMEA.

Lisa K. Kunkle: Senior Vice President, General Counsel and Secretary, 2015 to date. Vice President, General
Counsel and Secretary, 2007 to 2015, Assistant General Counsel, 2007. Partner, Jones Day (a global law firm) from
2006 to 2007. Associate, Jones Day from August 1995 to January 2006.

M. John Midea, Jr.: Senior Vice President, Global Operations and Process Improvement, 2015 to date. President
and Chief Executive Officer, Resco Products (a refractory products company) from 2012 to 2014. President and
Chief Operating Officer, Ennis Traffic Safety Solutions (a traffic safety and infrastructure company) from 2008 to
2012. Vice President, North American - General Industrial, Valspar Corporation (a manufacturer of paints and
coatings) from 2007 to 2008. Vice President and General Manager, Power Coatings, Valspar Corporation from 2002
to 2007.

14 AVIENT CORPORATION

Woon Keat Moh: Senior Vice President, President Color, Additives and Inks, Americas and Asia, April 2020 to date.
Senior Vice President, President of Color, Additives and Inks, 2020 to 2020. Vice President of Asia, 2019 to 2019.
General Manager of Specialty Engineered Materials Asia, 2014 to 2018. Sales Director of Color and Additives Asia,
2011 to 2014. Business Development Manager, Color and Additives Asia, 2010 to 2011. From 1999 to 2010, Mr.
Moh worked for Clariant AG (a global manufacturer of color and additives masterbatch) in various roles of
increasing responsibility, culminating in a commercial
leadership role in Southeast Asia. He also served as a
technical sales executive for Bayer AG (a manufacturer of pigments, dyestuffs, additives, chemical auxiliaries for
textile, leather, paper and plastic industry) with its Specialty Products division from 1997 to 1999.

Chris L. Pederson: Senior Vice President, President of Specialty Engineered Materials, 2018 to date. Vice
President, Strategy, Hexcel Corporation (a global leader in advanced composites technology) from 2017 to 2018.
Vice President, Aerospace of Cytec Engineered Materials (a producer of specialty bonding adhesives and
composite materials) from 2009 to 2016. Vice President, Research and Development of Cytec from 2004 to 2009.
Mr. Pederson served as a Senior Engineer at Boeing (a global aerospace company) from 1992 to 2001.

Vinod Purayath, PhD: Senior Vice President, Chief Technology Officer, 2021 to date. Vice President, Technology,
SunRise Memory Corp. (a semiconductor company based in California) from 2019 to 2021. Managing Director,
Selective Removal Products Division, of Applied Materials, Inc. (a supplier of equipment, services and software for
the manufacture of semiconductor chips) from 2013 to 2019. Dr. Purayath also served in various positions at
Sandisk (a manufacturer of flash memory products) from 2005 to 2013, and as a Research Fellow at the Japan
Advanced Institute for Science and Technology from 2003 to 2005.

Joel R. Rathbun: Senior Vice President, Mergers and Acquisitions, 2016 to date. General Manager, Specialty
Engineered Materials North America, 2013 to 2016. Vice President, Mergers and Acquisitions, 2011 to 2013. Mr.
Rathbun served as Senior Vice President, Mergers and Acquisitions, Moelis & Company (an American global
independent investment bank) from 2008 to 2011. He also served as Executive Director, Mergers and Acquisitions
of CIBC World Markets (an investment bank in the domestic and international equity and debt capital markets) from
2006 to 2008.

João José San Martin Neto: Senior Vice President, Chief Human Resources Officer, 2016 to date. Senior Director,
Human Resources, Color, Additives and Inks, 2013 to 2016. Group Global Director, Human Resources, Engineered
Products and Solutions from 2012 to 2013. Vice President Human Resources, Alcoa Power and Propulsion (a
business unit of Alcoa Inc. specializing in titanium and aluminum castings) from 2009 to 2012. Vice President
Human Resources, Alcoa Electrical & Electronic Solutions (a business unit of Alcoa Inc. specializing in the design,
development and production of electrical and electronic distribution systems) from 2003 to 2009.

15 AVIENT CORPORATION

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES

Our common shares, $0.01 par value per share, are traded on the New York Stock Exchange under the symbol
“AVNT.”

As of February 4, 2022, there were 1,543 holders of record of our common shares.

We currently have an authorized common share repurchase program. For the full year 2021, we repurchased 0.1
million common shares at a weighted average share price of $42.43. During the three months ended December 31,
2021, we repurchased no common shares as shown in the table below.

Period

October 1 to October 31

November 1 to November 30

December 1 to December 31

Total

Total Number
of Shares
Purchased

Weighted
Average Price
Paid Per Share

— $

—

Total Number
of Shares
Purchased as
Part of Publicly
Announced
Program

—

Maximum
Number of
Shares that
May Yet be
Purchased
Under the
Program(1)

5,757,472

(1) Our Board of Directors approved a common share repurchase program authorizing Avient to purchase its common shares in August 2008,
which share repurchase authorization has been subsequently increased from time to time. On December 9, 2020, we announced that we
would increase our share buyback by an additional 5 million shares. As of December 31, 2021, approximately 5.8 million shares remained
available for purchase under these authorizations, which have no expiration. Purchases of common shares may be made by open market
purchases or privately negotiated transactions and may be made pursuant to Rule 10b5-1 plans and accelerated share repurchases.

ITEM 6. [RESERVED]

16 AVIENT CORPORATION

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

Overview

Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is designed to
provide information that is supplemental to, and should be read together with, our consolidated financial statements
and the accompanying notes contained in this Annual Report on Form 10-K. Information in this Item 7 is intended to
assist the reader in obtaining an understanding of our consolidated financial statements, the changes in certain key
items in those financial statements from year to year, the primary factors that accounted for those changes, and any
known trends or uncertainties that we are aware of that may have a material effect on our future performance, as
well as how certain accounting principles affect our consolidated financial statements. Unless otherwise noted, the
discussion that follows includes a comparison of our results of operations, liquidity and capital resources, and cash
flows for fiscal years 2021 and 2020. For a discussion of changes from fiscal year 2019 to fiscal year 2020, refer to
Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our
Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 25, 2021.

The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our
actual results could differ materially from those discussed in these forward-looking statements. Factors that could
cause or contribute to these differences include, but are not limited to, those discussed below and elsewhere in this
Annual Report on Form 10-K, particularly in “Cautionary Note on Forward-Looking Statements” and Item 1A, “Risk
Factors.”

Our Business

We are a premier formulator 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, with 2021 sales of $4.8 billion, we have manufacturing sites
and distribution facilities around the globe, with 69% and 46% of our respective Color, Additives and Inks and
Specialty Engineered Materials segments' sales outside the United States. 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.

Strategy and Key Trends

To achieve our vision, we have implemented a strategy with four core components: specialization, globalization,
operational excellence and commercial excellence. Specialization differentiates us through products, services,
technology and solutions that add value. Globalization allows us to service our customers with consistency
wherever their operations might be around the world. Operational excellence empowers us to respond to the voice
of the customer while focusing on continuous improvement. Commercial excellence enables us to deliver value to
customers by supporting their growth and profitability with superior customer service.

We are also committed to sustainability through our
four cornerstones of People, Products, Planet, and
Performance. Part of our long term investment in sustainability started in January 2019, when Avient, along with 29
other member companies, joined together as founding members of the Alliance to End Plastic Waste (AEPW). The
AEPW has thus far committed over $1.5 billion to help end plastic waste in the environment through investment in
infrastructure, innovation, education, and clean-up activities. The AEPW enables and brings to scale solutions to
minimize and manage plastic waste and promote solutions for used plastics that move towards a circular economy.
Our commitment to AEPW confirms the importance we place on being a global leader in all aspects of how we
define sustainability: People, Products, Planet and Performance. We have invested and are making important
contributions in each, which are discussed in depth in our sustainability report.

In the short term, we will maintain our focus on sales growth with expanding margins, with a goal of offsetting
economic headwinds in certain end markets and geographies, raw material volatility and logistics cost inflation.
Longer term, we will continue to focus on accelerating the launch of new products and collaborating with our
customers to develop new and unique solutions for their benefit while focusing on our four cornerstones of
sustainability named above to ensure the growth we achieve is sustainable for us and our customers. Capital
expenditures will be focused primarily to support sales growth, investment in recent acquisitions, and other strategic
investments. We also continue to consider acquisitions and other synergy opportunities that complement our core
platforms. These actions will ensure that we continue to invest in our core capabilities and continue to support
growth in key markets and product offerings.

17 AVIENT CORPORATION

We will continue our enterprise-wide Lean Six Sigma program directed at improving margin, profitability and cash
flow by applying proven management techniques and strategies to key areas of the business, such as pricing,
supply chain and operations management, productivity and quality. Long-term trends that currently provide
opportunities to leverage our strategy and commitment to sustainability include improving health and wellness,
protecting the environment, globalizing and localizing and increasing energy efficiency. Examples of how our
strategy supports these trends can be found in numerous initiatives: active participation in the medical device
market, leveraging our global footprint to deliver consistent solutions globally, light weighting and metal replacement
and development of solutions that respond to ever-changing market needs by offering alternatives to traditional
materials.

Recent 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. Although we are
unable to predict the ultimate impact of the COVID-19 outbreak at this time, the pandemic has in the past adversely
affected, and could in the future adversely affect our business. While we concluded there were no indicators of
impairment as of December 31, 2021, any significant sustained adverse change in financial
results or
macroeconomic conditions could result
to which our
operations may continue to be impacted by the COVID-19 pandemic will depend largely on future developments,
which are highly uncertain and cannot be accurately predicted, including new information which may emerge
concerning the severity of the outbreak and actions by government authorities to contain the outbreak or treat its
impact.

long-lived assets. The extent

in future impairments of

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 colorants that include sustainable solutions for alternative energy, and
reduced material requirements for packaging and light weighting. In connection with the completion of the Clariant
Color Acquisition and effective as of June 30, 2020, the Company amended its existing Articles of Incorporation to
change its name to Avient Corporation. In conjunction with its rebranding and new name, the Company also
changed its ticker symbol from "POL" to "AVNT", effective at the start of trading on July 13, 2020.

Total consideration paid by the Company to complete the Clariant Color Acquisition was $1.4 billion net of cash and
debt. To finance the Clariant Color Acquisition, the Company used $496.1 million of net proceeds from the issuance
of common shares in an underwritten public offering completed in February 2020 and $640.5 million of 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.

Other Acquisitions

Highlights and Executive Summary

A summary of Avient’s sales, operating income, income from continuing operations, net of income taxes and net
income from continuing operations attributable to Avient common shareholders is included in the following table:

(In millions)
Sales

Operating income

Net income from continuing operations, net of income taxes

Net income from continuing operations attributable to Avient common shareholders

2021

2020

2019

$ 4,818.8

$ 3,242.1

$ 2,862.7

381.2

230.6

230.8

189.3

133.8

132.0

156.8

75.7

75.5

18 AVIENT CORPORATION

Results of Operations

Variances —
Favorable
(Unfavorable)

2021 versus 2020

(Dollars in millions, except per share data)

2021

2020

2019

Change

%
Change

Sales

Cost of sales

Gross margin

Selling and administrative expense

Operating income

Interest expense, net

Other (expense) income, net

Income from continuing operations before income taxes

Income tax expense

$ 4,818.8

$ 3,242.1

$ 2,862.7

$ 1,576.7

48.6 %

3,719.2

2,457.8

2,205.5

(1,261.4)

(51.3)%

1,099.6

718.4

381.2

(75.3)

(1.3)

304.6

(74.0)

784.3

595.0

189.3

657.2

500.4

156.8

(74.6)

(59.5)

24.3

139.0

12.1

109.4

315.3

40.2 %

(123.4)

(20.7)%

191.9

101.4 %

(0.7)

(25.6)

(0.9)%

165.6

119.1 %

(5.2)

(33.7)

(68.8)

Net income from continuing operations

230.6

133.8

75.7

96.8

72.3 %

(Loss) income from discontinued operations, net of income taxes

Net income

Net loss (income) attributable to noncontrolling interests

—

230.6

0.2

(0.4)

133.4

(1.8)

513.1

588.8

(0.2)

0.4

97.2

2.0

72.9 %

Net income attributable to Avient common shareholders

230.8

131.6

588.6

99.2

75.4 %

Earnings per share attributable to Avient common shareholders - basic:

Continuing operations

Discontinued operations

Total

Earnings per share attributable to Avient common shareholders - diluted:

Continuing operations

Discontinued operations

Total

nm - not meaningful

Sales

2.53

1.47

—

(0.01)

2.53

1.46

0.98

6.64

7.62

2.51

1.46

—

(0.01)

2.51

1.45

0.97

6.61

7.58

Sales increased $1,576.7 million, or 48.6%, in 2021 compared to 2020, due to the Clariant Color Acquisition, as well
as growth in many end markets and price increases associated with raw material inflation.

Cost of sales

As a percent of sales, cost of sales increased from 75.8% in 2020 to 77.2% in 2021, primarily as a result of rising
raw material costs.

Selling and administrative expense

These costs include selling, technology, administrative functions, corporate and general expenses. Selling and
administrative expense in 2021 increased $123.4 million compared to 2020, primarily driven by the Clariant Color
Acquisition.

Other (expense) income, net

Other income, net decreased $25.6 million in 2021 as compared to 2020 due to a mark-to-market adjustment and
curtailments on our pension and other post-employment benefit obligations that resulted in a loss of $9.4 million in
2021, while it resulted in a gain of $17.2 million in 2020 (see Note 11, Employee Benefit Plans to the accompanying
condensed consolidated financial statements). All components of net periodic benefit cost, except for service costs,
are presented herein.

19 AVIENT CORPORATION

Income taxes

The Company is subject to taxation in the U.S. and numerous international jurisdictions. In determining the effective
income tax rate, the Company analyzes various factors, including annual earnings, the laws of taxing jurisdictions in
which the earnings were generated, the impact of state and local income taxes, the ability to use tax credits, net
operating loss carryforwards, and available planning alternatives. Discrete items, including the effect of changes in
tax laws, statutory tax rates, and valuation allowances or other non-recurring tax adjustments are reflected in the
period in which they occur as an addition to, or reduction from, the tax provision.

We recognize the resulting tax on global intangible low-taxed income (GILTI) and the deduction of foreign-derived
intangible income (FDII) as a period expense in the period in which the tax is incurred.

A reconciliation of the applicable U.S. federal statutory tax rate to the consolidated effective income tax rate from
continuing operations along with a description of significant or other reconciling items is included below.

(In millions)

Federal statutory income tax rate

Tax (benefit) expense on GILTI and FDII

International tax on certain current and prior year earnings

Net impact of non-deductible acquisition earnouts and transaction cost

Research and development credit

Carryback of capital losses

State and local tax, net

International tax rate differential

International permanent items

Net impact of uncertain tax positions

Changes in valuation allowances

Other

Effective income tax rate

2021 compared to 2020

Twelve Months Ended
December 31,

2021

2020

21.0 %

(1.7)

1.4

0.1

(0.8)

(0.4)

1.4

(0.2)

0.2

0.7

1.7

0.9

3.1

2.0

1.8

(2.1)

(13.1)

(3.4)

(2.7)

(5.2)

1.0

0.5

0.8

24.3 %

3.7 %

For 2021, we recognized a U.S. tax benefit of $5.5 million (1.7%) from decreased tax on GILTI and FDII arising from
higher domestic income. This benefit compared to tax expense on GILTI and FDII of $4.3 million (3.1%) for 2020.

We recognized a tax benefit of $1.2 million (0.4%) and $18.2 million (13.1%) in 2021 and 2020, respectively, from a
carryback of capital losses.

For 2021, state and local tax expense was $4.2 million (1.4%), which resulted from normal operations. In 2020, we
had a state and local
tax benefit of $4.7 million (3.4%), which included favorable prior year tax provision
adjustments and a state tax benefit from carryback of capital losses.

interest deductions and a
For 2021, international permanent items included the favorable tax effect of notional
change in a foreign tax rate. Offsetting these items were withholding taxes on intercompany foreign-to-foreign
income and deferred tax adjustments which resulted in a net unfavorable tax impact of $0.6 million (0.2%). For
2020, International permanent items also included the favorable tax effect of notional interest deductions, favorable
tax treatment of foreign exchanges losses, partially offset by non-deductibility of interest expense related to the
receipt of tax-exempt dividends, which resulted in a net favorable tax impact of $7.2 million (5.2%).

20 AVIENT CORPORATION

Segment Information

the segment

level does not

Operating income is the primary measure that is reported to our chief operating decision maker for purposes of
making decisions about allocating resources to the segments and assessing their performance. Operating income
include: corporate general and administrative costs that are not allocated to
at
segments; intersegment sales and profit eliminations; charges related to specific strategic initiatives, such as the
consolidation of operations; restructuring activities, including employee separation costs resulting from personnel
reduction programs, plant closure and phase-in costs; costs incurred directly in relation to acquisitions or
divestitures; integration costs; executive separation agreements; share-based compensation costs; environmental
remediation costs and other liabilities for facilities no longer owned or closed in prior years; actuarial gains and
losses associated with our pension and post-retirement benefit plans; and certain other items that are not included
in the measure of segment profit or loss that is reported to and reviewed by our chief operating decision maker.
These costs are included in Corporate and eliminations.

Avient has three reportable segments: (1) Color, Additives and Inks; (2) Specialty Engineered Materials; and (3)
Distribution. Our segments are further discussed in Note 15, Segment
to the accompanying
consolidated financial statements.

Information,

2021

2020

Change

% Change

2021 versus 2020

$ 2,401.6

$ 1,502.9

918.9

1,630.9

(132.6)

708.8

1,110.3

(79.9)

898.7

210.1

520.6

(52.7)

$ 4,818.8

$ 3,242.1

$ 1,576.7

180.8

122.3

303.1

132.0

93.2

94.4

69.5

(147.1)

(155.4)

37.6

23.7

8.3

59.8 %

29.6 %

46.9 %

(66.0)%

48.6 %

67.6 %

39.8 %

34.1 %

5.3 %

381.2

189.3

191.9

101.4 %

12.6 %

14.4 %

5.7 %

7.9 %

12.0 %

13.3 %

6.3 %

5.8 %

0.6 % points

1.1 % points

(0.6)% points

2.1 % points

Sales and Operating Income

(Dollars in millions)

Sales:
Color, Additives and Inks

Specialty Engineered Materials

Distribution

Corporate and eliminations

Sales

Operating income:

Color, Additives and Inks

Specialty Engineered Materials

Distribution

Corporate and eliminations

Operating income

Operating income as a percentage of sales:

Color, Additives and Inks

Specialty Engineered Materials

Distribution

Total

21 AVIENT CORPORATION

Color, Additives and Inks
Sales increased $898.7 million, or 59.8%, in 2021 compared to 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 $359.5 million, or 18.0%, in 2021
compared to 2020, as a result of growth in nearly all end markets and regions as well as price increases associated
with raw material inflation. Favorable foreign exchange also contributed 2%.

Operating income increased $122.3 million, or 67.6%, in 2021 compared to 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 34.0% in 2021
compared to 2020, as a result of the sales growth discussed above and capture of integration synergies, partially
offset by raw material and cost inflation.

Specialty Engineered Materials

Sales increased by $210.1 million, or 29.6%, in 2021 compared to 2020, largely driven by high demand for
advanced composite materials and growth in many end markets.

Operating income increased by $37.6 million in 2021 compared to 2020 due to increased sales and continued
growth of higher margin specialty and composites solutions.

Distribution

Sales increased $520.6 million, or 46.9%, in 2021 compared to 2020 driven by increased demand as well as higher
average selling prices. Operating income increased $23.7 million, or 34.1%, in 2021 compared to 2020 as a result
of the sales growth discussed above, partially offset by raw material cost inflation.

Corporate and Eliminations

Costs declined $8.3 million in 2021 compared to 2020 primarily due to 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 December 31, 2021:

(In millions)
Cash and cash equivalents
Revolving credit availability
Liquidity

601.2
485.5
1,086.7

As of December 31, 2021, approximately 71% of the Company’s cash and cash equivalents resided outside the
United States.

Based on current projections, we believe that we will be able to continue to manage and control working capital,
discretionary spending and capital expenditures and that cash provided by operating activities, along with available
borrowing capacity under our revolving credit facilities, will allow us to maintain adequate levels of available capital
to fund our operations, meet debt service obligations, continue paying dividends, and opportunistically repurchase
outstanding common shares.

Expected sources of cash needed to satisfy cash requirements in 2022 include our cash on hand, cash from
operations and available liquidity under our revolving credit facility, if needed. Expected uses of cash in 2022 include
interest payments, cash taxes, dividend payments, share repurchases, environmental remediation costs, capital
expenditures and debt repayment. Capital expenditures are currently estimated to be approximately $135 million in
2022, primarily to support sales growth, our continued investment
in recent acquisitions and other strategic
investments.

22 AVIENT CORPORATION

Cash Flows

The following table summarizes our cash flows from operating, investing and financing activities:

(In millions)
Cash provided by (used by):
Operating Activities
Investing Activities
Financing Activities
Effect of exchange rate on cash
Net (decrease) increase in cash and cash equivalents

2021

2020

2019

233.8
(150.2)
(114.6)
(17.3)

221.6
(1,431.6)
982.0
12.8

)
(48.3) $
(

(
(215.2) $

)

300.8
611.9
(218.3)
(0.6)

693.8

Operating activities

In 2021, net cash provided by operating activities was $233.8 million as compared to $221.6 million in 2020, as
greater earnings, lower payments for taxes and the absence of earn out payments from prior acquisitions were
largely offset by the build in working capital to support the sales growth realized in 2021.

Investing Activities

Net cash used by investing activities during 2021 of $150.2 million primarily reflects $47.6 million related to the
Magna Acquisition and capital expenditures of $100.6 million.

Financing Activities

Net cash used by financing activities in 2021 primarily reflects $77.7 million in dividends paid and the repayment of
long term debt of $18.5 million.

Total Debt

The following table summarizes debt as presented at December 31, 2021 and 2020.

(In millions)
Senior secured revolving credit facility due 2026
5.25% senior notes due 2023

5.75% senior notes due 2025
Senior secured term loan due 2026

Other debt
Total debt
Less short-term and current portion of long-term debt
Total long-term debt, net of current portion

2021

2020

— $

598.6

643.2
605.3
11.8
1,858.9
8.6

1,850.3

—
597.5

641.2
610.0
23.9
1,872.6
18.6

1,854.0

The Company maintains a senior secured revolving credit facility, which matures on October 26, 2026 and provides
a maximum borrowing facility size of $500.0 million, subject to a borrowing base with advances against certain U.S.
and international accounts receivable, inventory and other assets as specified in the agreement. On October 26,
2021, the Company and certain of its subsidiaries entered into the First Amendment to the Third Amended and
Restated Credit Agreement (the ABL Amendment) with Wells Fargo Capital Finance, LLC, as administrative agent
(in such capacity, Administrative Agent) and the various lenders and other agents party thereto. The ABL
Amendment amends the Third Amended and Restated Credit Agreement, dated June 28, 2019, by and among the
the Company party thereto, Wells Fargo Capital Finance, LLC, as
Company and certain subsidiaries of
administrative agent, and the various lenders and other agents party thereto. The ABL Amendment, among other
things, (i) increased the Company’s total revolving credit line to $500.0 million (which may be increased by up to
$150.0 million subject to the Company meeting certain requirements and obtaining commitments for such increase)
(the Revolving Credit Facility), subject to the borrowing base limitations, (ii) extended the maturity date of the
Revolving Credit Facility to October 26, 2026 (subject to certain exceptions), (iii) modified the borrowing base to
include qualified cash subject to certain limitations, (iv) modified the applicable margin and the unused line fee to be
based on availability, and (v) modified certain negative covenants to provide additional
flexibility. As of
December 31, 2021, we had no borrowings outstanding under our Revolving Credit Facility, which had remaining
availability of $485.5 million. As of December 31, 2020, we had no borrowings under our Revolving Credit Facility,
which had remaining availability of $278.2 million.

23 AVIENT CORPORATION

On April 11, 2018, the Company entered into a fifth amendment to its senior secured term loan. Under the terms of
the amended senior secured term loan, the margin was reduced by 25 basis points to 175 basis points. At the
Company's discretion, interest is based upon (i) a margin rate of 75 basis points plus a Prime Rate, subject to a
floor of 175 basis points. On November 9, 2018, the Company entered into a sixth amendment to its senior secured
term loan, which extended the maturity to 2026. Repayments in the amount of one percent of the aggregate
principal amount as of August 3, 2016 are payable annually, while the remaining balance matures on January 30,
2026. The total principal repayments for the year ended December 31, 2021 were $6.5 million.

The agreements governing our Revolving Credit Facility and our senior secured term loan, and the indentures and
credit agreements governing other debt, contain a number of customary financial and restrictive covenants. As of
December 31, 2021, we were in compliance with all customary financial and restrictive covenants pertaining to our
debt.

For additional information regarding our debt, please see Note 6, Financing Arrangements to the accompanying
condensed consolidated financial statements.

Letters of Credit

Our Revolving Credit Facility provides up to $50.0 million for the issuance of letters of credit, $12.1 million of which
was used at December 31, 2021. These letters of credit are issued by the bank in favor of third parties and are
mainly related to insurance claims.

Material Cash Requirements

We have future obligations under various contracts relating to debt and interest payments, operating leases,
pension and post-retirement benefit plans and purchase obligations. The following table summarizes our obligations
as of December 31, 2021 that are expected to impact liquidity and cash flow in future periods. See Liquidity and
Capital Resources for additional discussion of our ability to generate and access cash to meet requirements as well
as plans for use of cash in both the short-term and long-term.

(In millions)

Total debt (1)

Operating leases

Interest on long-term debt obligations (2)

Pension and post-retirement obligations (3)

Purchase obligations (4)

Total

2022

2023

2024

2025

2026

Thereafter

Payment Due by Period

1,873.3

8.6

608.6

8.6

$ 658.7

81.3

241.8

89.4

40.5

26.3

84.4

9.5

27.5

19.8

68.5

8.9

8.1

12.6

52.6

8.7

3.0

7.7

33.7

9.0

1.5

6.9

4.6

1.6

9.0

0.4

581.9

10.3

1.0

44.3

—

2,326.3

156.3

713.9

85.5

$ 710.6

22.5

637.5

(1) Total debt includes both the current and long-term portions of debt and capital lease obligations.
(2) Represents estimated contractual interest payments for all outstanding debt.
(3) This represents estimates related to the funding obligations of our pension and other post retirement plans. These contributions are based

on actuarial estimates of future assumed payments based upon retirement and payment patterns for a 10-year period. The estimates in the
table may differ materially from actual future payments due to uncertainties regarding the assumptions involved in estimating future
required contributions to our pension and non-pension post retirement benefit plans, including (i) interest rate levels (ii) the amount and
timing of asset returns and (iii) what, if any, changes may occur in pension funding legislation.

(4) Purchase obligations are primarily comprised of service agreements related to telecommunication, information technology, utilities and

other manufacturing plant services and certain capital commitments.

Critical Accounting Policies and Estimates

Significant accounting policies are described more fully in Note 1, Description of Business and Summary of
Significant Accounting Policies, to the accompanying consolidated financial statements. The preparation of financial
statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires us to make
estimates and assumptions about future events that affect the amounts reported in our consolidated financial
statements and accompanying notes. We base our estimates on historical experience and assumptions that we
believe are reasonable considering the related facts and circumstances. The application of these critical accounting
policies involves the exercise of judgment and use of assumptions for future uncertainties. Accordingly, actual
results could differ significantly from these estimates. We believe that the following discussion addresses our most
critical accounting policies, which are those that are the most important to the portrayal of our financial condition and
results of operations and require our most difficult, subjective and complex judgments.

24 AVIENT CORPORATION

Description

Judgments and Uncertainties

Effect if Actual Results
Differ from Assumptions

This accrual represents our best

•
estimate of the remaining probable
costs based upon information and
technology currently available.
Depending upon the results of future
testing, the ultimate remediation
alternatives undertaken, changes in
regulations, new information, newly
discovered conditions and other
factors, it is reasonably possible that
we could incur additional costs in
excess of the amount accrued.
However, such additional costs, if
any, cannot currently be estimated.
Our estimate of this liability may be
revised as new regulations or
technologies are developed or
additional information is obtained.

If further developments or
•
resolution of these matters are not
consistent with our assumptions and
judgments, we may need to
recognize a significant adjustment in
a future period.

• As we progress through certain
benchmarks such as completion of
the remedial design and remedial
action, additional information will
become available that may require
an adjustment to our existing
reserves.

Environmental Liabilities

• Based upon our estimates, we had an
undiscounted accrual of $124.5 million at
December 31, 2021 for probable future environmental
expenditures. Any such provision is recognized using
the Company's best estimate of the amount of loss
incurred, or at the lower end of an estimated range,
when a single best estimate is not determinable.

• With respect to the former Goodrich Corporation
Calvert City site, the United States Environmental
Protection Agency (USEPA) issued its Record of
Decision (ROD) in September 2018, selecting a
remedy consistent with our accrual assumptions. In
April 2019, the respondents signed an Administrative
Settlement Agreement and Order on Consent with the
USEPA to conduct the remedial design. In October
2019, the USEPA sent a Special Notice Letter to
Avient, Westlake Vinyls, and Goodrich Corporation,
inviting negotiation of a Consent Decree to perform the
remedial actions at the site. In 2020, the three
companies, USEPA, and the US Department of Justice
signed the agreed Consent Decree, which received
Federal Court approval in January 2021.

•
In some cases, the Company recovers a portion of
the costs relating to these obligations from insurers or
other third parties; however, the Company records
such amounts only when they are collected.

25 AVIENT CORPORATION

Description

Judgments and Uncertainties

Effect if Actual Results
Differ from Assumptions

• The expected long-term return on
plan assets utilized as of January 1,
2021 and 2020 was 4.86% and 5.05%,
respectively. An increase/decrease in
our expected long-term return on plan
assets of 50 basis points as of
December 31, 2021 would result in a
change of approximately $2.5 million to
2022 net periodic benefit cost.

Although management believes

•
that the estimates and judgments
discussed herein are reasonable,
actual results could differ, which could
result in income tax expense or
benefits that could be material.

Asset returns and interest rates

•
significantly affect the value of future
assets and liabilities of our pension and
post-retirement plans and therefore the
funded status of our plans. It is difficult to
predict these factors due to the volatility of
market conditions.

To develop our discount rate, we

•
consider the yields of high-quality
corporate bonds with maturities that
correspond to the timing of our benefit
obligations, referred to as the bond
matching approach.

To develop our expected long-term

•
return on plan assets, we consider
historical and forward looking long-term
asset returns and the expected investment
portfolio mix of plan assets. The weighted-
average expected long-term rate of return
on plan assets was 4.86% for 2021, 5.05%
for 2020 and 5.68% for 2019.

Life expectancy is a significant

•
assumption that impacts our pension and
other post-retirement benefits obligation.
During 2020, we adopted the MP-2020
mortality improvement scale which was
issued by the Society of Actuaries in
October 2020.

•
The utilization of certain deferred tax
assets is dependent on the amount and
timing of taxable income that we will
ultimately generate in the future and other
factors, such as changes in tax laws. We
have provided valuation allowances as of
December 31, 2021, aggregating to $19.6
million against certain international, state
and local net operating loss carryforwards
and other deferred tax assets. As of
December 31, 2021, the gross liability for
unrecognized income tax benefits,
including interest and penalties, totaled
$21.3 million.

• Undistributed and indefinitely
reinvested earnings for certain
consolidated non-U.S. subsidiaries were
approximately $489 million as of
December 31, 2021. No tax provision was
made on these earnings as APB 23
provides guidance that U.S. companies do
not need to recognize tax effects on
international earnings that are indefinitely
reinvested. Additionally, no deferred
income taxes were recorded on taxable
outside basis differences as it was not
practicable to determine the tax provision
impact.

Pension and Other Post-retirement Plans

• We account for our defined benefit pension
plans and other post-retirement plans in
accordance with Financial Accounting
Standards Board (FASB) Accounting
Standards Update (ASC) Topic 715,
Compensation — Retirement Benefits. We
immediately recognize actuarial gains and
losses in our operating results in the year in
which the gains or losses occur. In 2021, we
recognized a $9.4 million loss that was
primarily the result of actual asset returns that
were lower than our assumed returns. Partially
offsetting the lower asset returns was an
increase in our year end discount rate from
2.47% to 2.69%.

Income Taxes

• We account for income taxes using the
asset and liability method under FASB ASC
Topic 740. Under the asset and liability
method, deferred tax assets and liabilities are
recognized for the estimated future tax
consequences attributable to differences
between the financial statement carrying
amounts of existing assets and liabilities and
their respective tax bases. In addition, deferred
tax assets are also recorded with respect to
net operating losses and other tax attribute
carryforwards. Deferred tax assets and
liabilities are measured using enacted tax rates
in effect for the year in which those temporary
differences are expected to be recovered or
settled. Valuation allowances are established
when realization of the benefit of deferred tax
assets is not deemed to be more likely than
not. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized
in income in the period that includes the
enactment date.

• We recognize net tax benefits under the
recognition and measurement criteria of FASB
ASC Topic 740, Income Taxes, which
prescribes requirements and other guidance
for financial statement recognition and
measurement of positions taken or expected to
be taken on tax returns. We record interest
and penalties related to uncertain tax positions
as a component of income tax expense.

26 AVIENT CORPORATION

Description

Judgments and Uncertainties

Effect if Actual Results
Differ from Assumptions

Goodwill

• Goodwill represents the excess of the
purchase price over the fair value of the net
assets of acquired companies. We follow the
guidance in ASC 350, Intangibles — Goodwill
and Other, including subsequent updates, and
test goodwill for impairment at least annually,
absent a triggering event that would warrant
an impairment assessment. On an ongoing
basis, absent any impairment indicators, we
perform our goodwill impairment testing as of
the first day of October of each year.

• We have identified our reporting units
at the operating segment level, or in most
cases, one level below the operating
segment level. Goodwill is allocated to the
reporting units based on the estimated fair
value at the date of acquisition.

• We estimated fair value using the best
information available to us, including
market information and discounted cash
flow projections using the income
approach.

The income approach requires us to

•
make assumptions and estimates
regarding projected economic and market
conditions, growth rates, operating
margins and cash expenditures. Sensitivity
analyses were performed around these
assumptions in order to assess the
reasonableness of the assumptions and
the resulting estimated fair values.

Indefinite-lived Intangible Assets

Indefinite-lived intangible assets represent

•
trade names associated with acquired
companies.

• We estimate the fair value of trade
names using a “relief from royalty
payments” approach. This approach
involves two steps: (1) estimating
reasonable royalty rate for the trade name
and (2) applying this royalty rate to a net
sales stream and discounting the resulting
cash flows to determine fair value. Fair
value is then compared with the carrying
value of the trade name.

If actual results are not consistent

•
with our assumptions and estimates,
we may be exposed to goodwill
impairment charges.

The fair value of the reporting unit

•
is based on a number of subjective
factors including: (a) appropriate
consideration of valuation approaches,
(b) the consideration of our business
outlook and (c) weighted average cost
of capital (discount rate), growth rates
and market multiples for our estimated
cash flows.

Based on our 2021 annual

•
impairment test performed on October
1st where both quantitative and
qualitative tests were performed, we
determined there were no reporting
units considered to be at risk of
impairment. We believe that the current
assumptions and estimates are
reasonable, supportable and
appropriate. The business could be
impacted by unforeseen changes in
market factors or opportunities, which
could impact our existing assumptions
used in our impairment test. As such,
there can be no assurance that these
estimates and assumptions made for
the purposes of the goodwill
impairment test will prove to be
accurate predictions of future
performance.

If actual results are not consistent
•
with our assumptions and estimates,
we may be exposed to impairment
charges related to our indefinite lived
trade name

Based on our 2021 annual

•
impairment test, no trade names were
considered at risk.

Recent and Future Adoption of Accounting Standards

Information regarding recent and future adoption of accounting standards can be found in Note 1, Description of
Business and Summary of Significant Accounting Policies, to the accompanying consolidated financial statements
and is incorporated by reference herein.

27 AVIENT CORPORATION

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to certain market risks as part of our ongoing business operations, including risks from changes in
interest rates on debt obligations and foreign currency exchange rates that could impact our financial condition,
results of operations and cash flows. We manage our exposure to these and other market risks through regular
operating and financing activities, including the use of derivative financial
instruments. We intend to use these
derivative financial instruments as risk management tools and not for speculative investment purposes.

Interest rate exposure — Interest on our Revolving Credit Facility and senior secured term loan is based upon a
Prime rate or LIBOR, plus a margin. There would be no material impact on our interest expense or cash flows from
either a 10% increase or decrease in market rates of
interest on our outstanding variable rate debt as of
December 31, 2021.

Foreign currency exposure — We enter into intercompany transactions that are denominated in various foreign
currencies and are subject to financial exposure from foreign exchange rate movement from the date a loan is
recorded to the date it is settled or revalued. To mitigate this risk, we may enter into foreign exchange forward
contracts and derivative instruments. Gains and losses on these contracts generally offset gains and losses on the
assets and liabilities being hedged.

We face translation risks related to the changes in foreign currency exchange rates. Amounts invested in our foreign
operations are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. The resulting
translation adjustments are recorded as a component of Accumulated other comprehensive (loss) income in the
Shareholders’ equity section of the accompanying Consolidated Balance Sheets. Net sales and expenses in our
foreign operations’ foreign currencies are translated into varying amounts of U.S. dollars depending upon whether
the U.S. dollar weakens or strengthens against other currencies. Therefore, changes in exchange rates may either
positively or negatively affect our net sales and expenses from foreign operations as expressed in U.S. dollars.

28 AVIENT CORPORATION

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Financial Statements

Management’s Report
Reports of Independent Registered Public Accounting Firm (PCAOB ID:42)
Consolidated Financial Statements:

Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Balance Sheets
Consolidated Statements of Cash Flows
Consolidated Statements of Shareholders’ Equity
Notes to Consolidated Financial Statements

Page

30
31

35
36
37
38
39
40

29 AVIENT CORPORATION

MANAGEMENT’S REPORT

The management of Avient Corporation is responsible for preparing the consolidated financial statements and
disclosures included in this Annual Report on Form 10-K. The consolidated financial statements and disclosures
included in this Annual Report fairly present in all material respects the consolidated financial position, results of
operations, shareholders’ equity and cash flows of Avient Corporation as of and for the year ended December 31,
2021.

Management is responsible for establishing and maintaining disclosure controls and procedures designed to ensure
that the information required to be disclosed by the Company is captured and reported in a timely manner.
Management has evaluated the design and operation of the Company’s disclosure controls and procedures at
December 31, 2021 and found them to be effective.

Management is also responsible for establishing and maintaining a system of internal control over financial reporting
that is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles. Internal
control over financial reporting includes policies and procedures that provide reasonable assurance that: Avient
Corporation’s accounting records accurately and fairly reflect the transactions and dispositions of the assets of the
Company; unauthorized or improper acquisition, use or disposal of Company assets will be prevented or timely
detected;
the
Company’s consolidated financial statements in conformity with generally accepted accounting principles; and the
Company’s receipts and expenditures are made only in accordance with authorizations of management and the
Board of Directors of the Company.

the Company’s transactions are properly recorded and reported to permit

the preparation of

Management has assessed the effectiveness of Avient’s internal control over financial reporting as of December 31,
2021 and has prepared Management’s Annual Report On Internal Control Over Financial Reporting contained on
page 66 of this Annual Report, which concludes that as of December 31, 2021, Avient’s internal control over
financial reporting was effective and that no material weaknesses were identified.

/s/ ROBERT M. PATTERSON

/s/ JAMIE A. BEGGS

Robert M. Patterson

Jamie A. Beggs

Chairman, President and Chief Executive Officer

Senior Vice President and Chief Financial Officer

February 22, 2022

30 AVIENT CORPORATION

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Avient Corporation

Opinion on Internal Control over Financial Reporting

We have audited Avient Corporation’s internal control over financial reporting as of December 31, 2021, based on
criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of
In our opinion, Avient
Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as
of December 31, 2021, based on the COSO criteria.

the Treadway Commission (2013 framework)

(the COSO criteria).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the consolidated balance sheets of Avient Corporation as of December 31, 2021 and 2020, the
related consolidated statements of income, comprehensive income, cash flows and shareholders’ equity for each of
the three years in the period ended December 31, 2021, and the related notes of Avient Corporation and our report
dated February 22, 2022, expressed an unqualified opinion thereon.

Basis for Opinion

the effectiveness of

The Company’s management is responsible for maintaining effective internal control over financial reporting and for
its assessment of
internal control over financial reporting included in the accompanying
“Management’s Annual Report on Internal Control over Financial Reporting.” Our responsibility is to express an
opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting
firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with
the U.S.
the Securities and Exchange
Commission and the PCAOB.

federal securities laws and the applicable rules and regulations of

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting
was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a
material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

/s/ Ernst & Young LLP

Cleveland, Ohio

February 22, 2022

31 AVIENT CORPORATION

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Avient Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Avient Corporation (the Company) as of
December 31, 2021 and 2020, the related consolidated statements of income, comprehensive income, cash flows
and shareholders' equity for each of the three years in the period ended December 31, 2021, and the related notes
(collectively referred to as the “consolidated financial statements”).
the consolidated financial
statements present fairly, in all material respects, the financial position of the Company at December 31, 2021 and
2020, and the results of its operations and its cash flows for each of the three years in the period ended December
31, 2021, in conformity with U.S. generally accepted accounting principles.

In our opinion,

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2021, based on
criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission (2013 framework) and our report dated February 22, 2022 expressed an unqualified
opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with
the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of
the financial
statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial
statements that were communicated or required to be communicated to the audit committee and that: (1) relate to
accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion
on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which
they relate.

32 AVIENT CORPORATION

Description of the
Matter

How We Addressed
the Matter in Our
Audit

Environmental Accrued Liabilities

the environmental
As described in Note 12 to the consolidated financial statements,
accrued liability as of December 31, 2021 is approximately $124.5 million and is comprised
primarily of the cost estimate for the Calvert City location of $113.2 million. The Company
records an accrual
remediation projects on an
undiscounted basis which represents management’s best estimate of probable future costs
based upon currently available information and technology and management’s view of the
most likely remedy.

for probable future environmental

the accrual

Auditing the determination of
involved a high degree of subjectivity as
estimates underlying the determination of the accrual were based on assumptions unique
to the affected site and subject to various laws and regulations governing the protection of
the applicable environment. Actual costs incurred in future periods could differ from
amounts estimated and future changes to environmental
laws and regulations could
increase the extent of remediation work required, therefore the calculation is complicated
due to uncertainty in determining the probable future costs and the extent of
the
remediation efforts.

We obtained an understanding, evaluated the design and tested the operating
effectiveness of controls over the Company’s process to establish the environmental
accrued liability,
the information
including management’s review and evaluation of
included in the Calvert City Record of Decision and the Administrative Settlement
Agreement and Order on Consent issued by the United States Environmental Protection
Agency (USEPA). For example, we tested controls over management’s review of the
estimation and the significant assumptions used to develop future cost estimates. We
also tested management’s controls to validate that the data used in the accrual estimate
was complete and accurate.

With the assistance of our specialist, we tested the balance of the environmental accrued
liability and the disclosure of the expected cost to remediate. Our audit procedures
included, among others, making inquiries of internal general counsel, obtaining internal
general counsel’s representation and external communications used in determining the
environmental accrued liability. This included an evaluation of externally available
information and a comparison of management’s cost estimates to the estimates published
in the Record of Decision by the USEPA. We tested the significant assumptions used by
management by comparing those assumptions to accepted industry practice and
information included in the Record of Decision issued by the USEPA. We examined
historical costs for recurring items and compared those amounts to future projections for
similar costs.

Accounting for the Clariant Color Business Combination

Description of the
Matter

As discussed in Note 2 to the consolidated financial statements, on July 1, 2020, the
Company completed its acquisition of the equity interests in the global color business of
Clariant AG and certain assets of Clariant Chemicals (India) Limited. The business and
assets are collectively referred to as the Clariant Color Acquisition. Total consideration
paid by the Company to complete the Clariant Color Acquisition was approximately $1.4
billion, net of cash and debt. The acquisition is being accounted for under the acquisition
method of accounting. As of June 30, 2021, the purchase accounting for the Clariant
Color Acquisition was finalized.

33 AVIENT CORPORATION

How We Addressed
the Matter in Our
Audit

Accounting for the Clariant Color Business Combination (continued)

the purchase price to the
Auditing the Company’s accounting for the allocation of
identifiable assets and liabilities for the Clariant Color Acquisition was complex due to the
significant estimation in determining the fair value of identifiable intangible assets, which
principally consisted of customer relationships and developed technology. The Company
used the relief from royalty and multi-period excess earnings method to determine the fair
value of developed technology and customer relationships, respectively. The high degree
of subjectivity was primarily due to the sensitivity of
the respective fair values to
underlying assumptions about the future performance of the acquired business. The
significant assumptions used to estimate the value of the intangible assets included
discount rates and certain assumptions that form the basis of the forecasted results
including revenue growth rates, profitability, and royalty rates.

We obtained an understanding, evaluated the design and tested the operating
effectiveness of controls that address the risks of material misstatement relating to the
determination of the fair value of the identifiable intangible assets. For example, we tested
controls over management’s review of
the fair value methodologies and significant
assumptions described above.

To test the estimated fair values of the acquired intangible assets, we performed audit
included, among others, assessing methodologies and testing the
procedures that
significant assumptions discussed above and the underlying data used by the Company
in its analysis. We compared the significant assumptions used by management to current
industry and economic trends. We performed sensitivity analyses of significant
assumptions to evaluate the changes in the fair value of the intangible assets that would
result from changes in the assumptions. We utilized our specialist in assessing the
methodologies applied and evaluating significant assumptions. Furthermore, we
assessed the appropriateness of the disclosures in the consolidated financial statements
regarding the acquisition.

/s/ Ernst & Young LLP

We have served as Avient Corporation's auditor since 1993.

Cleveland, Ohio

February 22, 2022

34 AVIENT CORPORATION

Consolidated Statements of Income

(In millions, except per share data)
Sales

Cost of sales

Gross margin

Selling and administrative expense

Operating income

Interest expense, net

Other (expense) income, net

Income from continuing operations before income taxes

Income tax expense

Net income from continuing operations

(Loss) income from discontinued operations, net of income taxes

Net income

Net loss (income) attributable to noncontrolling interests

Net income attributable to Avient common shareholders

Earnings per share attributable to Avient common shareholders - Basic:

Continuing operations

Discontinued operations

Total

Earnings per share attributable to Avient common shareholders - Diluted:

Continuing operations

Discontinued operations

Total

Weighted-average shares used to compute earnings per common share:

Basic

Plus dilutive impact of share-based compensation

Diluted

Year Ended December 31,

2021

2020

2019

$ 4,818.8

$ 3,242.1

2,862.7

3,719.2

1,099.6

718.4

381.2

(75.3)

(1.3)

304.6

(74.0)

230.6

—

230.6

0.2

2,457.8

2,205.5

784.3

595.0

189.3

(74.6)

24.3

139.0

(5.2)

133.8

(0.4)

133.4

(1.8)

657.2

500.4

156.8

(59.5)

12.1

109.4

(33.7)

75.7

513.1

588.8

(0.2)

230.8

131.6

588.6

2.53

1.47

—

(0.01)

2.53

1.46

2.51

1.46

—

(0.01)

2.51

1.45

91.4

0.7

92.1

90.1

0.5

90.6

0.98

6.64

7.62

0.97

6.61

7.58

77.2

0.5

77.7

0.6

Anti-dilutive shares not included in diluted common shares outstanding

—

0.8

Cash dividends declared per share of common stock

0.875

0.820

0.788

The accompanying notes to the consolidated financial statements are an integral part of these statements.

35 AVIENT CORPORATION

Consolidated Statements of Comprehensive Income

(In millions)

Net income

Other comprehensive (loss) income, net of tax:

Translation adjustments and related hedging instruments

Cash flow hedges

Total other comprehensive (loss) income

Total comprehensive income

Comprehensive loss (income) attributable to noncontrolling interests

Comprehensive income attributable to Avient common shareholders

Year Ended December 31,

2021

2020

2019

$ 230.6

$ 133.4

$ 588.8

(75.2)

110.6

3.2

(1.6)

(72.0)

158.6

109.0

242.4

2.2

(2.5)

(0.3)

588.5

0.2

(1.8)

(0.2)

$ 158.8

$ 240.6

$ 588.3

The accompanying notes to the consolidated financial statements are an integral part of these statements.

36 AVIENT CORPORATION

Consolidated Balance Sheets

(In millions, except par value per share)
ASSETS

Current assets:

Cash and cash equivalents

Accounts receivable, net

Inventories, net

Other current assets

Total current assets

Property, net

Goodwill

Intangible assets, net

Operating lease assets, net

Other non-current assets

Total assets

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term and current portion of long-term debt

Accounts payable

Current operating lease obligations

Accrued expenses and other current liabilities

Total current liabilities

Non-current liabilities:

Long-term debt

Pension and other post-retirement benefits

Deferred income taxes

Non-current operating lease obligations

Other non-current liabilities

Total non-current liabilities

SHAREHOLDERS' EQUITY

Common Shares, $0.01 par, 400.0 shares authorized, 122.2 shares issued

Additional paid-in capital

Retained earnings

Common shares held in treasury, at cost, 30.6 shares in 2021 and 30.9 shares in 2020

Accumulated other comprehensive (loss) income

Avient shareholders’ equity

Noncontrolling interest

Total equity

Total liabilities and equity

Year Ended December 31,

2021

2020

601.2

642.3

461.1

122.4

1,827.0

676.1

1,286.4

925.2

74.1

208.4

649.5

516.6

327.5

108.5

1,602.1

694.9

1,308.1

1,008.5

80.9

176.0

4,997.2

4,870.5

8.6

553.9

24.2

353.9

940.6

18.6

471.7

25.1

285.6

801.0

1,850.3

1,854.0

100.0

100.6

50.1

165.1

115.0

140.0

56.0

192.8

2,266.1

2,357.8

1.2

1,511.8

1,208.0

(900.7)

(45.6)

1,774.7

15.8

1,790.5

1.2

1,513.3

1,057.4

(901.2)

26.4

1,697.1

14.6

1,711.7

4,997.2

4,870.5

The accompanying notes to the consolidated financial statements are an integral part of these statements.

37 AVIENT CORPORATION

Consolidated Statements of Cash Flows

(In millions)
Operating activities

Year Ended December 31,

2021

2020

2019

Net income
Adjustments to reconcile net income to net cash provided by operating activities:

230.6

133.4

588.8

Gain on sale of business, net of tax
Depreciation and amortization
Accelerated depreciation

Deferred income tax benefit
Share-based compensation expense

Changes in assets and liabilities, net of the effect of acquisitions:

(Increase) decrease in accounts receivable
(Increase) decrease in inventories
Increase (decrease) in accounts payable
(Decrease) increase in pension and other post-retirement benefits
Increase in post-acquisition earnout liabilities
Increase (decrease) in accrued expenses and other assets and liabilities - net
Taxes paid on gain on divestiture
Payment of post-acquisition date earnout liability

Net cash provided by operating activities

Investing activities

Capital expenditures

Business acquisitions, net of cash acquired

Net proceeds from divestiture

Other investing activities

—
144.2

1.7
(27.3)
11.2

(143.1)
(139.5)
95.3
(10.9)
—
71.6
—
—
233.8

(100.6)

(47.6)

—

(2.0)

—
111.8

3.2
(1.7)
11.3

(4.6)
40.2
78.4
30.7
1.0
(2.0)
(142.0)
(38.1)
221.6

(63.7)

(1,380.2)

7.1

5.2

Net cash (used) provided by investing activities

(150.2)

(1,431.6)

Financing activities
Debt offering proceeds

Borrowings under credit facilities

Repayments under credit facilities

Purchase of common shares for treasury

Cash dividends paid

Repayment of other debt

Repayment of long-term debt

Payments on withholding tax on share awards

Debt financing costs

Equity offering proceeds, net of underwriting discount and issuance costs

Payment of acquisition date earnout liability
Other financing activities
Net cash (used) provided by financing activities
Effect of exchange rate changes on cash

(Decrease) increase in cash and cash equivalents

Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

—

(4.2)

(77.7)

—

(18.5)

(10.7)

—

—
(3.5)
(114.6)

(17.3)

(48.3)
649.5
601.2

650.0

—

(22.4)

(71.3)

—

(7.8)

(2.3)

(9.5)

496.1

(50.8)
—
982.0

12.8

(215.2)
864.7
649.5

The accompanying notes to the consolidated financial statements are an integral part of these statements.

(457.7)
87.5

—
(3.2)
11.6

29.7
40.2
(22.7)
(19.7)
36.4
9.9
—
—
300.8

(81.7)

(119.6)

761.8

51.4

611.9

—

963.4

(1,083.9)

(26.9)

(60.3)

(1.8)

(6.5)

(2.1)

(0.2)

—

—
—
(218.3)

(0.6)

693.8
170.9
864.7

38 AVIENT CORPORATION

Consolidated Statements of Shareholders' Equity

Common Shares

Common
Shares
Held
in
Treasury

Common
Shares

Additional
Paid-in
Capital

Retained
Earnings

Shareholders’ Equity

Common
Shares
Held
in
Treasury

Accumulated
Other
Comprehensive
Income (Loss)

Total Avient
shareholders'
equity

Non-
controlling
Interests

Total
equity

122.2

(44.5) $

1.2

1,166.9

472.9

$ (1,018.7) $

(82.3) $

540.0

—

(1.0)

0.2

—

8.3

588.6

—

(60.3)

—

(26.9)

2.5

—

(0.3)

—

588.6

(0.3)

—

(60.3)

(26.9)

10.8

122.2

(45.3) $

1.2

1,175.2

1,001.2

$ (1,043.1) $

(82.6) $

1,051.9

0.6

0.2

$ 540.6

588.8

—

(0.3)

—

(60.3)

(26.9)

10.8

0.8

1.8

$1,052.7

133.4

— $

(0.3) $

— $

(0.3) $

12.8

12.5

—

(1.0)

15.3

0.1

—

334.8

3.3

131.6

—

(75.1)

—

(22.4)

161.3

3.0

122.2

(30.9)

—

(0.1)

1.2

—

1,513.3

1,057.4

(901.2)

—

230.8

—

(80.2)

—

(4.2)

—

131.6

109.0

—

109.0

—

(0.8)

(75.1)

(22.4)

496.1

6.3

—

(75.1)

(22.4)

496.1

6.3

26.4

—

1,697.1

230.8

14.6

1,711.7

(0.2)

230.6

(72.0)

—

(80.2)

(4.2)

—

1.4

—

(72.0)

1.4

(80.2)

(4.2)

— $

5.6

— $

5.6

(2.4)

0.4

— $

(2.4)

0.9

— $

4.7

— $

122.2

)
(
(30.6) $

1.2

1,511.8

1,208.0

(
(900.7) $

)

)
(
(45.6) $

1,774.7

15.8

$1,790.5

(In millions)

Balance at January 1,
2019

Net income

Other
comprehensive loss

Noncontrolling
interest activity

Cash dividends
declared (1)

Repurchase of
common shares

Share-based
compensation and
exercise of awards

Balance at December
31, 2019

Net income

Other
comprehensive
income

Noncontrolling
interest activity

Cash dividends
declared (1)

Repurchase of
common shares

Common shares
equity offering

Share-based
compensation and
exercise of awards

Acquisitions/other

Balance at
December 31, 2020

Net income

Other
comprehensive
income

Noncontrolling
interest activity

Cash dividends
declared (1)

Repurchase of
common shares

Share-based
compensation and
exercise of awards

Acquisitions/other

Balance at
December 31, 2021

(1) Dividends declared per share were $0.875, $0.820, and $0.788 for the years ended December 31, 2021, 2020 and 2019, respectively.

The accompanying notes to the consolidated financial statements are an integral part of these statements.

39 AVIENT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

We are a premier formulator 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 North America, South America, Europe, the Middle East, Asia, and Africa. We provide
value to our customers through our ability to link our knowledge of polymers and formulation technology with our
manufacturing and supply chain to provide value added solutions to designers, assemblers and processors of
plastics. When used in these notes to the consolidated financial statements, the terms “we,” “us,” “our,” “Avient” and
the “Company” mean Avient Corporation and its consolidated subsidiaries.

Our operations are reported in three reportable segments: Color, Additives and Inks; Specialty Engineered
Materials; and Distribution. See Note 15, Segment Information, for more information.

Accounting Standards Adopted

On January 1, 2021, the Company adopted Financial Accounting Standards Board (FASB) Account Standards
Update (ASU) 2019-12, Income Taxes (ASC 740) - Simplifying the Accounting for Income Taxes (ASU 2019-12),
which simplifies the accounting for income taxes by removing certain exceptions to the general principles in FASB
Accounting Standards Codification (ASC) 740 and also clarifies and amends existing guidance to improve
consistent application. The adoption of ASU 2019-12 did not result in any material impact.

Accounting Standards Not Yet Adopted

ASU 2020-04, Reference Rate Reform (ASU 2020-04), provides optional guidance for a limited period of time to
ease potential accounting impacts associated with transitioning away from reference rates that are expected to be
discontinued, such as LIBOR. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and
other transactions that reference LIBOR or another reference rate expected to be discontinued. These expedients
are effective for the period from March 2020 to December 31, 2022. The Company has not adopted any of the
expedients or exceptions through December 31, 2021 but will continue to evaluate the impact of adopting this
standard on our consolidated financial statements and disclosures.

Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of Avient and its subsidiaries. All majority-owned
affiliates over which we have control are consolidated. Transactions with related parties, including joint ventures, are
in the ordinary course of business.

Historical
Discontinued operations are further discussed in Note 3, Discontinued Operations.

information has been retrospectively adjusted to reflect the classification of discontinued operations.

Use of Estimates

Preparation of financial statements in conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions in certain circumstances that affect amounts reported in
the accompanying consolidated financial statements and notes. Actual results could differ from these estimates.

Cash and Cash Equivalents

We consider all highly liquid investments purchased with a maturity of
equivalents. Cash equivalents are stated at cost, which approximates fair value.

less than three months to be cash

Allowance for Doubtful Accounts

We evaluate the collectability of receivables based on a combination of factors, each of which are adjusted if
specific circumstances change. We reserve for amounts determined to be uncollectible based on a specific
customer’s inability to meet its financial obligation to us. We also record a general reserve based on the age of
receivables past due, current conditions and forecasted information, the credit risk of specific customers, economic
conditions and historical experience. In estimating the allowance, we take into consideration the existence of credit
insurance.

40 AVIENT CORPORATION

Inventories

Raw materials and finished goods are carried at lower of cost or market using either the weighted average cost or
the first-in, first-out (FIFO) method. The inventory reserve totaled $24.5 million and $22.5 million at December 31,
2021 and 2020, respectively.

Long-lived Assets

Property, plant and equipment is carried at cost, net of depreciation and amortization that is computed using the
straight-line method over the estimated useful lives of the assets, which generally ranges from three to 15 years for
machinery and equipment and up to 40 years for buildings. We depreciate certain assets associated with closing
manufacturing locations over a shortened life (through the cease-use date). Software is amortized over periods not
exceeding 10 years. Property, plant and equipment is generally depreciated on accelerated methods for income tax
purposes. We expense repair and maintenance costs as incurred. We capitalize replacements and improvements
that increase the estimated useful life of an asset.

We retain fully depreciated assets in property and accumulated depreciation accounts until we remove them from
service. In the case of sale, retirement or disposal, the asset cost and related accumulated depreciation balance is
removed from the respective account, and the resulting net amount, less any proceeds, is included as a component
of income from continuing operations in the accompanying Consolidated Statements of Income.

We account for operating and finance leases under the provisions of FASB ASC Topic 842.

Finite-lived intangible assets, which consist primarily of customer relationships, patents and technology are
amortized over their estimated useful lives. The useful lives range up to 20 years.

We assess the recoverability of long-lived assets when events or changes in circumstances indicate that we may
not be able to recover the assets’ carrying amount. We measure the recoverability of assets to be held and used by
a comparison of the carrying amount of the asset to the expected future undiscounted cash flows associated with
the asset. We measure the amount of impairment of long-lived assets as the amount by which the carrying value of
the asset exceeds the fair value of the asset, which is generally determined based on projected discounted future
cash flows or appraised values. No such impairments were recognized during 2021, 2020 or 2019.

Goodwill and Indefinite Lived Intangible Assets

In accordance with the provisions of FASB ASC Topic 350, Intangibles — Goodwill and Other, we assess the fair
value of goodwill on an annual basis or at an interim date if potential impairment indicators are present. Goodwill is
the excess of the purchase price paid over the fair value of the net assets of the acquired business. Goodwill is
tested for impairment, quantitatively or qualitatively, at the reporting unit level. Our reporting units have been
identified at the operating segment level, or in most cases, one level below the operating segment level. Goodwill is
allocated to the reporting units based on the estimated fair value at the date of acquisition.

Our annual measurement date for testing impairment of goodwill and indefinite-lived intangibles is October 1. We
completed our testing of impairment as of October 1, noting no impairment in 2021, 2020 or 2019. There are no
reporting units identified as at-risk of impairment. The future occurrence of a potential indicator of impairment would
require an interim assessment for some or all of the reporting units prior to the next required annual assessment on
October 1, 2022.

We test our goodwill either quantitatively or qualitatively for impairment. For our quantitative approach, we use an
income approach to estimate the fair value of our reporting units. The income approach uses a reporting unit’s
projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital
that is determined based on current market conditions. The projection uses management’s best estimates of
economic and market conditions over the projected period including growth rates in sales, costs, and estimates of
future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions
include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future
working capital requirements. We validate our estimates of fair value under the income approach by considering the
implied control premium and conclude whether the implied control premium is reasonable based on other recent
market transactions.

A qualitative approach for both goodwill and indefinite-lived intangible assets is performed if the last quantitative test
exceeded certain thresholds. During our qualitative approach, we assess whether the existence of events or
circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than
its carrying amount. If, after assessing the totality of events and circumstances, we determine it is more likely than
not that the fair value is less than carrying value, a quantitative impairment test is performed for each asset, as
described above.

41 AVIENT CORPORATION

Indefinite-lived intangible assets primarily consist of the GLS, ColorMatrix, Gordon Composites, and Fiber-Line
trade names. Indefinite-lived intangible assets are tested, quantitatively or qualitatively, for impairment annually at
the same time we test goodwill for impairment. For our quantitative approach, the implied fair value of indefinite-
lived intangible assets is determined based on significant unobservable inputs, as summarized below. The fair value
of the trade names is calculated using a “relief from royalty” methodology. This approach involves two steps:
(1) estimating reasonable royalty rates for the trade name and (2) applying this royalty rate to a net sales stream
and discounting the resulting cash flows to determine fair value using a weighted-average cost of capital that is
determined based on current market conditions. This fair value is then compared with the carrying value of the trade
name.

Litigation Reserves

FASB ASC Topic 450, Contingencies, requires that we accrue for loss contingencies associated with outstanding
litigation, claims and assessments for which management has determined it is probable that a loss contingency
exists and the amount of loss can be reasonably estimated. We recognize expense associated with professional
fees related to litigation claims and assessments as incurred. Refer to Note 12, Commitments and Contingencies,
for further information.

Derivative Financial Instruments

FASB ASC Topic 815, Derivative and Hedging, requires that all derivative financial instruments, such as foreign
exchange contracts, be recognized in the financial statements and measured at fair value, regardless of the
purpose or intent in holding them.

We are exposed to foreign currency changes and to changes in cash flows due to changes in our contractually
specified interest rates (e.g., LIBOR) in the normal course of business. We have established policies and
procedures that manage this exposure through the use of financial instruments. By policy, we do not enter into
these instruments for trading purposes or speculation. We formally assess, designate and document, as a hedge of
an underlying exposure, the qualifying derivative instrument that will be accounted for as an accounting hedge at
inception. Additionally,
in accordance with ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted
Improvements to Accounting for Hedging Activities, we assess at inception whether the financial instruments used
in the hedging transaction are highly effective at offsetting changes in either the fair values or cash flows of the
underlying exposures. If highly effective, any subsequent test may be done qualitatively.

The net interest payments accrued each month for effective instruments designated as a hedge are reflected in net
income as adjustments of interest expense and the remaining change in the fair value of the derivatives is recorded
as a component of Accumulated Other Comprehensive Income (Loss) (AOCI). Instruments not designated as
hedges are adjusted to fair value at each period end, with the resulting gains and losses recognized in the
accompanying Consolidated Statements of Income immediately.

Refer to Note 16, Derivatives and Hedging, for more information.

Pension and Other Post-retirement Plans

We account
for our pensions and other post-retirement benefits in accordance with FASB ASC Topic 715,
Compensation — Retirement Benefits. We immediately recognize actuarial gains and losses in our operating results
in the year in which the gains or losses occur. Refer to Note 11, Employee Benefit Plans, for more information.

42 AVIENT CORPORATION

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) in 2021, 2020 and 2019 were as follows:

(In millions)

Balance at January 1, 2019

Translation Adjustments

Unrealized losses

Balance at December 31, 2019

Translation Adjustments

Unrealized losses

Balance at December 31, 2020

Translation Adjustments

Unrealized gains

Balance at December 31, 2021

Cumulative
Translation
Adjustment and
Related Hedging
Instruments

Pension and
other post-
retirement
benefits

Cash Flow
Hedges

Total

(86.2) $

5.2

(1.3) $

(82.3)

(6.9)

9.1

(84.0)

152.3

(41.7)

26.6

(127.7)

52.5

—

5.2

—

5.2

—

(2.5)

(3.8)

—

(1.6)

(5.4)

—

3.2

(6.9)

6.6

(82.6)

152.3

(43.3)

26.4

(127.7)

55.7

(48.6) $

5.2

(2.2) $

(45.6)

Fair Value of Financial Instruments

FASB ASC Topic 820, Fair Value Measurements and Disclosures, requires disclosures of the fair value of financial
instruments. The estimated fair values of financial instruments were principally based on market prices where such
fair values were estimated based on market prices of similar
prices were available and, where unavailable,
instruments.

Foreign Currency Translation

Revenues and expenses are translated at average currency exchange rates during the related period. Assets and
liabilities of foreign subsidiaries are translated using the exchange rate at the end of the period. The resulting
translation adjustments are recorded as accumulated other comprehensive income or loss. Gains and losses
resulting from foreign currency transactions, including intercompany transactions that are not considered long-term
investments, are included in Other income (expense), net.

Revenue Recognition

We recognize revenue once control of the product is transferred to the customer, which typically occurs when
products are shipped from our facilities.

Shipping and Handling Costs

Shipping and handling costs are included in cost of sales.

Research and Development Expense

Research and development costs of $83.2 million in 2021, $59.8 million in 2020 and $50.6 million in 2019 are
charged to expense as incurred.

Environmental Costs

We expense costs that are associated with managing hazardous substances and pollution in ongoing operations on
a current basis. Costs associated with environmental contamination are accrued when it becomes probable that a
liability has been incurred and our proportionate share of the cost can be reasonably estimated. Any such provision
is recognized using the Company's best estimate of the amount of loss incurred, or at the lower end of an estimated
range, when a single best estimate is not determinable. In some cases, the Company may be able to recover a
portion of the costs relating to these obligations from insurers or other third parties; however, the Company records
such amounts only when they are collected.

Share-Based Compensation

We account for share-based compensation under the provisions of FASB ASC Topic 718, Compensation - Stock
Compensation, which requires us to estimate the fair value of share-based awards on the date of grant. The value
of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service

43 AVIENT CORPORATION

periods in the accompanying Consolidated Statements of Income. As of December 31, 2021, we had one active
share-based employee compensation plan, which is described more fully in Note 14, Share-Based Compensation.

Income Taxes

Deferred income tax liabilities and assets are determined based upon the differences between the financial
reporting and tax basis of assets and liabilities and are measured using the tax rate and laws currently in effect. In
accordance with FASB ASC Topic 740, Income Taxes, we evaluate our deferred income taxes to determine whether
a valuation allowance should be established against the deferred tax assets or whether the valuation allowance
should be reduced based on consideration of all available evidence, both positive and negative, using a “more likely
than not” standard. See Note 13, Income Taxes, for additional detail.

Note 2 — BUSINESS COMBINATIONS

On July 1, 2020, we completed our acquisition of the equity interests in the global color business of Clariant AG, a
corporation organized and existing under the law of Switzerland (Clariant), and certain assets of Clariant Chemicals
(India) Limited, a public limited company incorporated in India and an indirect majority owned subsidiary of Clariant
(Clariant India). The business and assets are collectively referred to as Clariant Color and the acquisitions are
collectively referred to as the Clariant Color Acquisition.

Total consideration paid by the Company to complete the Clariant Color Acquisition was $1.4 billion, net of cash and
debt. To finance the purchase of Clariant Color, the Company used $496.1 million of net proceeds from the issuance
of common shares in an underwritten public offering completed in February 2020 and $640.5 million of 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 our Performance Products and Solutions business segment (PP&S). For additional details
related to the sale of PP&S and the senior unsecured notes offering, refer to Note 3, Discontinued Operations and
Note 6, Financing Arrangements, respectively.

The Clariant Color Acquisition is being accounted for under the acquisition method of accounting in accordance with
ASC Topic 805. As of June 30, 2021, the purchase accounting for the Clariant Color Acquisition was finalized.

44 AVIENT CORPORATION

The summarized purchase price allocation is as follows:

(In millions)

Preliminary Allocation
As of December 31,
2020

Measurement Period
Adjustments

Final Allocation

Cash and cash equivalents

145.1 $

— $

Accounts receivable

Inventories

Other current assets

Property

Goodwill

Intangible assets:

Customer relationships

Trade names and trademarks

Patents, technology and other

Operating lease assets

Other long-term assets

Short term debt

Accounts payable

Current operating lease obligations

Accrued expenses and other current liabilities

Long-term debt

Non-current operating lease obligations

Deferred tax liabilities

Pension and other post-retirement benefits

Other long-term liabilities

Non-controlling interests

170.8

99.0

56.9

267.6

569.0

221.9

32.0

273.9

30.1

1.3

(0.4)

(92.7)

(2.8)

(81.2)

(6.7)

(25.8)

(60.7)

(53.8)

(5.4)

(12.8)

—

0.2

6.3

(7.5)

(7.8)

—

(20.7)

2.8

7.4

—

5.8

—

1.2

—

(4.5)

—

25.9

—

(6.7)

(2.4)

145.1

170.8

99.2

63.2

260.1

561.2

201.2

34.8

281.3

30.1

7.1

(0.4)

(91.5)

(2.8)

(85.7)

(6.7)

(25.8)

(34.8)

(53.8)

(12.1)

(15.2)

Total purchase price consideration

1,525.3 $

— $

1,525.3

The intangible assets that have been acquired are being amortized over a period of 18 to 20 years.

Goodwill of $561.2 million was recorded and allocated to the Color, Additives and Inks segment. The goodwill
recognized is primarily attributable to the expected synergies to be achieved from the business combination. A
portion of the goodwill is deductible for tax purposes.

Had the Clariant Color Acquisition occurred on January 1, 2019, which was the beginning of the fiscal year prior to
the years ended
the acquisition, sales and income from continuing operations before income taxes for
December 31, 2020 and 2019 on a pro forma basis would have been as follows:

(In millions)

Sales

Income from continuing operations before income taxes

(Unaudited)

2020

3,782.5

204.2

2019

3,981.3

98.9

information has been calculated after applying our accounting policies and
The unaudited pro forma financial
adjusting the historical results with pro forma adjustments that assume the Clariant Color Acquisition occurred on
January 1, 2019. These unaudited pro forma results do not represent financial results realized, nor are they
intended to be a projection of future results. In preparation of the pro forma financial information, we eliminated
certain historical allocations made by Clariant as they do not represent the stand alone operations of Clariant Color
and replaced them with costs more likely to occur as a part of Avient. This elimination removed expense of
$6.6 million and $12.7 million during 2020 and 2019, respectively. The amortization of inventory step-up from the
preliminary purchase price allocation was $9.7 million, and is reflected in Cost of sales. Additionally, we incurred
$10.1 million of costs related to committed financing which are reflected in Interest expense, net. The amounts

45 AVIENT CORPORATION

associated with the amortization of inventory step-up and costs related to committed financing were removed from
2020, and presented in the pro forma financial information.

Costs incurred in connection with the Clariant Color Acquisition were $19.2 million in 2020. These fees were
charged to Selling and Administrative expense.

Other Acquisitions

On July 1, 2021, the Company completed its acquisition of Magna Colours Ltd. (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 $22.0 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.

Our acquisitions of PlastiComp, Inc. (PlastiComp) on May 31, 2018 and Fiber-Line, LLC (Fiber-Line) on January 2,
2019 involved contingent earnout consideration. The PlastiComp earnout had a ceiling of $35.0 million that was
reached during the first quarter of 2020 and paid in the third quarter of 2020. The Fiber-Line earnout was based on
two annual earnout periods, with the second earnout period target based on year-one results. A payment of
$53.9 million associated with the first Fiber-Line earnout period was made in the first quarter of 2020. There was no
payment made for the second Fiber-Line earnout period, which ended on December 31, 2020.

Note 3 — DISCONTINUED OPERATIONS

On October 25, 2019, we divested the PP&S segment for $782.1 million cash. The sale resulted in the recognition
of an after-tax gain of $457.7 million, which is reflected within Income (loss) from discontinued operations, net of
income taxes.

The Company has continuing involvement with the former PP&S business following the close of the transaction.
The Company entered into a four-year distribution agreement with the former PP&S business to be the exclusive
distributor for certain products, under terms that were similar prior to the disposal transaction. The Company and the
former PP&S business have also entered into contract manufacturing and supply agreements for certain products
for a two-year period. For the twelve months ended December 31, 2021 and 2020, our net cash outflow related to
the agreements was approximately $114.1 million and $65.0 million, respectively.

The following table summarizes the discontinued operations associated with PP&S for the years ended December
31, 2020 and 2019.

(In millions)

Sales
Cost of sales

Selling and administrative expense

Gain on sale

Pretax (loss) income of discontinued operations

Income tax expense

(Loss) income from discontinued operations, net of taxes

2020

2019

— $
—

(0.9)

—

(0.9)

0.5

)
(0.4) $
(

488.9
(390.1)

(28.0)

591.2

662.0

(148.9)

513.1

The following table presents the depreciation, amortization, and capital expenditures of our discontinued operations
for the twelve months ended December 31, 2020 and 2019. There were no other significant operating or investing
non-cash items for the twelve months ended December 31, 2020 and 2019.

(In millions)

Depreciation and amortization

Capital Expenditures

2020

2019

— $

—

9.4

14.1

46 AVIENT CORPORATION

Note 4 — GOODWILL AND INTANGIBLE ASSETS

Goodwill as of December 31, 2021 and 2020 and changes in the carrying amount of goodwill by segment were as
follows:

(In millions)
Balance at January 1, 2020

Acquisition of businesses

Currency translation

Balance at December 31, 2020

Acquisition of businesses

Currency translation

Specialty
Engineered
Materials

Color, Additives
and Inks

Distribution

Total

236.3 $

447.8 $

1.6 $

—

1.5

237.8

—

(1.5)

569.0

51.9

1,068.7

14.1

(34.3)

—

1.6

—

685.7

569.0

53.4

1,308.1

14.1

(35.8)

Balance at December 31, 2021

236.3 $

1,048.5 $

1.6 $

1,286.4

Indefinite and finite-lived intangible assets consisted of the following:

(In millions)
Customer relationships
Patents, technology and other
Indefinite-lived trade names
Total

Acquisition Cost
507.2
566.7
113.2
1,187.1

(In millions)
Customer relationships
Patents, technology and other
Indefinite-lived trade names
Total

Acquisition Cost
508.7
549.9
109.5
1,168.1

As of December 31, 2021

Accumulated
Amortization

Currency
Translation

(135.4) $
(134.3)
—
(
(269.7) $

)

6.0
1.8
—
7.8

As of December 31, 2020

Accumulated
Amortization

Currency
Translation

(109.8) $
(102.4)
—
(
(212.2) $

)

23.8
28.8
—
52.6

Net

377.8
434.2
113.2
925.2

Net

422.7
476.3
109.5
1,008.5

Amortization of finite-lived intangible assets included in continuing operations for the years ended December 31,
2021, 2020 and 2019 was $57.5 million, $43.5 million and $29.5 million, respectively.

We expect finite-lived intangibles amortization expense for the next five years as follows:

(In millions)

2022

2023

2024

2025

2026

Expected Amortization Expense

55.5

53.1

52.6

51.9

47 AVIENT CORPORATION

Note 5 — EMPLOYEE SEPARATION AND RESTRUCTURING COSTS

As part of our integration efforts associated with the Clariant Color Acquisition, we are engaged in a restructuring
plan. The restructuring plan is expected to enable us to better serve customers, improve efficiency and deliver
anticipated synergy-related cost savings. We expect to incur costs for exit and disposal activities under generally
accepted accounting principles when actions associated with the restructuring plan are approved and announced.
The costs recorded in Cost of sales during 2021 and 2020 included $3.2 million and $0.4 million, respectively,
related to fixed asset disposals and $7.0 million and $0.2 million, respectively, related to severance. Additionally, in
2021 there were other costs recorded in Cost of sales of $1.0 million. The costs recorded in Selling and
administrative expense during 2021 and 2020 include $0.1 million and $6.4 million of severance, respectively, and
the full restructuring plan will be
$0.4 million and $0.2 million of other costs, respectively. We expect
implemented through 2023 and anticipate that we will incur approximately $75 million of charges in connection with
the restructuring plan.

that

restructuring costs included in the Consolidated Statement of

Total
December 31, 2021 and 2020 are as follows:

Income for

the twelve months ended

(in millions)

Cost of goods sold

Selling and administrative expenses

Total employee separation and restructuring charges

Note 6 — FINANCING ARRANGEMENTS

2021

2020

14.5

0.2

14.7

4.2

15.4

19.6

For each of the periods presented, total debt consisted of the following:

Principal
Amount

Unamortized
discount and debt
issuance cost

Net Debt

Weighted
average
interest rate

As of December 31, 2021 (in millions)
Senior secured revolving credit facility due 2026
5.25% senior notes due 2023

5.75% senior notes due 2025
Senior secured term loan due 2026

Other Debt
Total Debt
Less short-term and current portion of long-term debt
Total long-term debt, net of current portion

— $

600.0

650.0
611.5
11.8
1,873.3
8.6
1,864.7

As of December 31, 2020 (in millions)
Senior secured revolving credit facility due 2026
5.25% senior notes due 2023
5.75% senior notes due 2025
Senior secured term loan due 2026

Other Debt
Total Debt
Less short-term and current portion of long-term debt
Total long-term debt, net of current portion

— $

600.0
650.0
618.0
23.9
1,891.9
18.6
1,873.3

— %
5.25 %
5.75 %

1.85 %

— $
1.4

6.8
6.2
—
14.4
—
14.4

—
598.6

643.2
605.3
11.8
1,858.9
8.6
1,850.3

— %
5.25 %
5.75 %
2.36 %

— $
2.5
8.8
8.0
—
19.3
—
19.3

—
597.5
641.2
610.0
23.9
1,872.6
18.6
1,854.0

Principal
Amount

Unamortized
discount and debt
issuance cost

Net Debt

Weighted
average
interest rate

On October 26, 2021, the Company and certain of its subsidiaries entered into the First Amendment to the Third
Amended and Restated Credit Agreement (the ABL Amendment) with Wells Fargo Capital Finance, LLC, as
administrative agent (in such capacity, Administrative Agent) and the various lenders and other agents party thereto.
The ABL Amendment amends the Third Amended and Restated Credit Agreement, dated June 28, 2019 (the ABL
Credit Agreement), by and among the Company and certain subsidiaries of the Company party thereto, Wells Fargo
Capital Finance, LLC, as administrative agent, and the various lenders and other agents party thereto. The ABL
Amendment, among other things, (i) increased the Company’s total revolving credit line to $500 million (which may

48 AVIENT CORPORATION

be increased by up to $150 million subject
to the Company meeting certain requirements and obtaining
commitments for such increase) (the Revolving Credit Facility), subject to the borrowing base limitations, (ii)
extended the maturity date of the Revolving Credit Facility to October 26, 2026 (subject to certain exceptions), (iii)
modified the borrowing base to include qualified cash subject to certain limitations, (iv) modified the applicable
margin and the unused line fee to be based on availability, and (v) modified certain negative covenants to provide
additional flexibility. On June 28, 2019, the Company amended and restated its senior secured revolving credit
facility to, among other things, add a European line of credit, up to the euro equivalent of $50.0 million, subject to a
borrowing base with advances against certain European accounts receivable. Advances under the U.S. portion of
our Revolving Credit Facility bear interest, at the Company’s option, at a Base Rate or a LIBOR Rate plus an
applicable margin. The Base Rate is a fluctuating rate equal to the greater of (i) the Federal Funds Rate plus one-
half percent, (ii) the prevailing LIBOR Rate plus one percent, and (iii) the prevailing Prime Rate. The applicable
margins vary based on the Company’s daily average excess availability during the previous quarter. As of
December 31, 2021, we had no borrowings outstanding under our Revolving Credit Facility, which had remaining
availability of $485.5 million. As of December 31, 2020, we had no borrowings under our Revolving Credit Facility,
which had remaining availability of $278.2 million.

On February 28, 2013, the Company entered into an indenture with Wells Fargo Bank National Association, as
trustee, relating to the issuance by the Company of $600.0 million aggregate principal amount of senior notes due
2023. The Senior notes bear an interest rate of 5.25% per year, payable semi-annually, in arrears, on March 15 and
September 15 of each year, which commenced on September 15, 2013.

On May 13, 2020, the Company entered into an indenture (the Indenture) with U.S. Bank National Association, as
trustee (the Trustee), relating to the issuance by the Company of $650 million aggregate principal amount of 5.75%
Senior Notes due 2025 (the Notes). The Notes were sold on May 13, 2020 in a private transaction exempt from the
registration requirements of the Securities Act of 1933 (the Securities Act), have not been and will not be registered
under the Securities Act, and may not be offered or sold in the United States absent registration or an applicable
exemption from the registration requirements of
the Securities Act. The Company received net proceeds of
$640.5 million from the Notes offering, net of debt issuance costs, which were recorded on the balance sheet and
are being amortized into Interest expense, net over the term of the debt. Also included in Interest expense, net for
the year ended December 31, 2020, are costs associated with committed financing of $10.1 million related to the
Clariant Color Acquisition.

The agreements governing our Revolving Credit Facility and our senior secured term loan, and the indentures and
credit agreements governing other debt, contain a number of customary financial and restrictive covenants that,
among other things, limit our ability to: sell or otherwise transfer assets, including in a spin-off, incur additional debt
or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or
make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or
other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct.
As of December 31, 2021, we were in compliance with all covenants.

As of December 31, 2020, the Company maintained a credit line of $12.0 million with Saudi Hollandi Bank. The
credit line had an interest rate equal to the Saudi Arabia Interbank Offered Rate plus a fixed rate of 0.85% and is
subject to annual renewal. Borrowings under the credit line were primarily used to fund capital expenditures related
to the manufacturing facility in Jeddah, Saudi Arabia. As of December 31, 2020, letters of credit under the credit line
were immaterial and borrowings were $10.3 million with a weighted average annual interest rate of 1.85%. As of
December 31, 2020, there was remaining availability on the credit line of $1.7 million. This credit line was closed in
2021.

The estimated fair value of Avient’s debt instruments at December 31, 2021 and 2020 was $1,917.7 million and
$1,955.9 million, respectively, compared to carrying values of $1,858.9 million and $1,872.6 million as of
December 31, 2021 and 2020, respectively. The fair value of Avient’s debt instruments was estimated using
prevailing market interest rates on debt with similar creditworthiness, terms and maturities and represent Level 2
measurements within the fair value hierarchy.

49 AVIENT CORPORATION

Aggregate maturities of the principal amount of debt for the next five years and thereafter are as follows:

(In millions)

2022

2023

2024

2025

2026

Thereafter

Aggregate maturities

8.6

608.6

8.6

658.7

6.9

581.9

1,873.3

Included in Interest expense, net for the years ended December 31, 2021, 2020 and 2019 was interest income of
$17.5 million, $19.9 million, and $11.0 million, respectively. Total interest paid on debt, net of the impact of hedging
(see Note 16, Derivatives and Hedging), was $72.6 million in 2021, $61.1 million in 2020 and $67.0 million in 2019.

Note 7 — LEASING ARRANGEMENTS

We lease certain manufacturing facilities, warehouse space, machinery and equipment, vehicles and information
technology equipment under operating leases. The majority of our leases are operating leases. Finance leases are
immaterial to our condensed consolidated financial statements. Operating lease assets and obligations are reflected
within Operating lease assets, net, Current operating lease obligations, and Non-current operating lease obligations,
respectively.

Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease
payments recognized in the period those payments are incurred. The components of lease cost from continued
operations recognized within our Condensed Consolidated Statements of Income for the twelve months ended
December 31, 2021 and 2020 were as follows:

(In millions)

Cost of sales

Selling and administrative expense

Total Operating lease cost

2021

2020

22.3

12.1

34.4

20.0

13.3

33.3

We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options
are generally at our sole discretion. In addition, certain lease arrangements may be terminated prior to their original
expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to
determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted
average remaining lease term for our operating leases as of December 31, 2021 and 2020 was 4.7 years and 5.4
years, respectively. The non-cash net increase in operating lease liabilities was $18.3 million and $10.5 million for
the years ended December 31, 2021 and 2020, respectively.

The discount rate implicit within our leases is generally not determinable and, therefore, the Company determines
the discount rate based on its incremental borrowing rate. The incremental borrowing rate for our leases is
determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral.
The weighted average discount rate used to measure our operating lease liabilities as of December 31, 2021 and
2020 were 3.7% and 3.9%, respectively.

50 AVIENT CORPORATION

Future minimum lease payments under non-cancelable operating leases with initial lease terms longer than one
year as of December 31, 2021 and 2020 are as follows:

Maturity Analysis of Lease Liabilities:

(in millions)

2022

2023

2024

2025

2026

Thereafter

Total

Less amount of lease payment representing interest

Total present value of lease payments

(in millions)

2021

2022

2023

2024

2025

Thereafter

Total

Less amount of lease payment representing interest

Total present value of lease payments

Note 8 — INVENTORIES, NET

Components of Inventories, net as of December 31, 2021 and 2020 are as follows:

2021

2020

26.3

19.8

12.6

7.7

4.6

10.3

81.3

(7.0)

74.3

28.0

21.4

15.0

8.7

4.7

13.3

91.1

(10.0)

81.1

(In millions)
Finished products
Work in process
Raw materials and supplies
Inventories, net

Note 9 — PROPERTY, NET

2021

2020

244.4
21.2
195.5
461.1

171.7
16.6
139.2
327.5

Components of Property, net as of December 31, 2021 and 2020 are as follows:

(In millions)
Land and land improvements

Buildings

Machinery and equipment
Property, gross

Less accumulated depreciation

Property, net

2021

2020

91.5

350.6
972.3

1,414.4
(738.3)
676.1

95.7

333.5
948.2

1,377.4
(682.5)
694.9

Depreciation expense from continuing operations was $84.9 million in 2021, $68.2 million in 2020 and $48.6 million
in 2019.

51 AVIENT CORPORATION

Note 10 — OTHER BALANCE SHEET LIABILITIES

Other liabilities at December 31, 2021 and 2020 consist of the following:

(in millions)
Employment costs
Environmental liabilities
Accrued taxes
Pension and other post-employment benefits
Accrued interest
Dividends payable
Unrecognized tax benefits
Derivatives
Other
Total

Note 11 — EMPLOYEE BENEFIT PLANS

Accrued expenses and
other current liabilities

Other non-current liabilities

2021

2020

2021

2020

187.9
25.8
56.8
6.9
14.1
21.7
0.7
3.1
36.9
353.9

142.7
20.3
49.0
6.7
14.1
19.4
3.2
—
30.2
285.6

7.6
98.7
—
—
—
—
20.0
—
38.8
165.1

6.1
99.4
—
—
—
—
7.3
48.4
31.6
192.8

All U.S. qualified defined benefit pension plans are frozen, no longer accrue benefits and are closed to new
participants. We have foreign pension plans that accrue benefits. The plans generally provide benefit payments
using a formula that is based upon employee compensation and length of service.

The following tables present the change in benefit obligation, change in plan assets and components of funded
status for defined benefit pension and post-retirement health care benefit plans.

(in millions)

Change in benefit obligation:
Projected benefit obligation - beginning of year
Service cost
Interest cost
Actuarial (loss) gain
Benefits paid
Effect of settlement and/or curtailment
Acquired benefit obligation
Other

Projected benefit obligation - end of year
Projected salary increases

Accumulated benefit obligation
Change in plan assets:

Plan assets - beginning of year
Actual return on plan assets
Company contributions
Benefits paid
Effect of settlement and curtailment
Acquired plan assets
Other

Plan assets - end of year

Unfunded status at end of year

Pension Benefits

2021

2020

Health Care Benefits
2020
2021

602.0
4.7
14.2
(12.1)
(53.9)
(1.5)
—
(4.1)
549.3
(7.7)
541.6

573.6
2.9
8.6
(53.9)
(0.9)
—
(1.0)
529.3

478.0
3.0
15.3
24.5
(40.9)
(23.0)
137.3
7.8
602.0
(8.8)
593.2

469.1
60.5
5.4
(40.9)
(16.5)
92.4
3.6
573.6

18.3
0.1
0.5
(1.6)
(1.2)
(0.3)
—
—
15.8
—
15.8

— $
—
1.2
(1.2)
—
—
—
— $

7.1
0.1
0.4
—
(0.7)
—
11.3
0.1
18.3
—
18.3

—
—
0.7
(0.7)
—
—
—
—

)
(20.0) $
(

)
(28.4) $
(

)
(15.8) $
(

)
(18.3)
(

52 AVIENT CORPORATION

Amounts included in the accompanying Consolidated Balance Sheets as of December 31 are as follows:

(in millions)
Non-current assets
Accrued expenses and other liabilities
Pension and other post-retirement benefits

Pension Benefits

2021

2020

Health Care Benefits
2020
2021

71.1
5.7
85.4

75.0
5.4
98.0

— $
1.2
14.6

—
1.3
17.0

As of December 31, 2021 and 2020, we had plans with total projected and accumulated benefit obligations in
excess of the related plan assets as follows:

(in millions)
Projected benefit obligation
Fair value of plan assets

Accumulated benefit obligation
Fair value of plan assets

Pension Benefits
2021

2020

Health Care Benefits
2020
2021

116.6
26.5

108.3
25.4

149.5
46.7

122.8
28.2

15.8
—

18.3
—

Weighted-average assumptions used to determine benefit obligations at December 31:

Discount rate
Assumed health care cost trend rates at December 31:

Pension Benefits

Health Care Benefits

2021

2020

2021

2020

2.69 %

2.47 %

2.85 %

2.66 %

Health care cost trend rate assumed for next year

Rate to which the cost trend rate is assumed to
decline (the ultimate trend rate)

Year that the rate reaches the ultimate trend rate

N/A

6.44 %

5.99 %

4.08 %

2065

4.04 %

2065

The following table summarizes the components of net periodic benefit cost or gain that was recognized during
each of the years in the three-year period ended December 31, 2021.

(in millions)
Components of net periodic benefit costs (gains):

Service Cost
Interest Cost
Expected return on plan assets
Mark-to-market actuarial net losses (gains)

Curtailment

Net periodic cost (benefit)

Pension Benefits
2020

2019

2021

Health Care Benefits
2020

2021

2019

4.7
14.2
(26.9)

11.9

3.0
15.3
(25.3)

(10.8)

0.5
18.2
(23.7)

(9.7)

(0.6)
3.3

(6.4)
)
(
(24.2) $

—
)
(14.7) $
(

0.1
0.5
—

(1.7)

(0.2)
)
(
(1.3) $

0.1
0.4
—

—

—
0.5

$ —
0.2
—

0.1

—
0.3

In 2021, we recognized a $9.4 million mark-to-market loss that was primarily the result of actual asset returns that
were lower than our assumed returns. Partially offsetting the lower asset returns was an increase in our year end
discount rate from 2.47% to 2.69%.

In 2020, we recognized a $17.2 million mark-to-market gain that was primarily the result of actual asset returns that
were higher than our assumed returns and mortality assumptions. Included in the mark-to-market gain was a
$6.4 million gain related to lump sum payments that were offered to certain eligible participants of our US Qualified
Pension Plan in the second quarter of 2020 which resulted in a settlement of $1.1 million, and a curtailment gain of
$5.3 million related to certain acquired pension plans during the fourth quarter of 2020. Partially offsetting the mark-
to-market gain was the decrease in our year end discount rate from 3.19% to 2.47%.

53 AVIENT CORPORATION

In 2019, we recognized a $9.6 million mark-to-market gain that was primarily a result of actual asset returns that
were higher than our assumed returns and mortality assumptions. Partially offsetting the higher asset returns was
the decrease in our year end discount rate from 4.11% to 3.19%.

Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:

Discount rate*
Expected long-term return on plan assets*
Assumed health care cost trend rates at December 31:
Assumed health care cost trend rates at January 1:
Rate to which the cost trend rate is assumed to
decline (the ultimate trend rate)

Year that the rate reaches the ultimate trend rate

Pension Benefits

Health Care Benefits

2021
2.47 %
4.86 %

2020
3.19 %
5.05 %

2019
4.11 %
5.68 %

2021
2.66 %
—

2020
3.06 % 3.98 %

2019

—

N/A

N/A
N/A

N/A

N/A
N/A

N/A

6.24 %

6.16 % 6.09 %

N/A
N/A

4.04 %
2066

4.14 % 4.50 %
2027

2054

*The mark-to-market component of net periodic costs is determined based on discount rates as of year-end and actual asset returns during the

year.

The expected long-term rate of return on pension assets was determined after considering the historical and
forward looking long-term asset returns by asset category and the expected investment portfolio mix.

Our pension investment strategy is to diversify the portfolio among asset categories to enhance the portfolio’s risk-
adjusted return as well as insulate it from exposure to changes in interest rates. Our asset mix considers the
duration of plan liabilities, historical and expected returns of the investments, and the funded status of the plan. The
pension asset allocation is reviewed and actively managed based on the funded status of the plan. Based on the
current funded status of the plan, our pension asset investment allocation guidelines are to invest 83% in fixed
income securities and 17% in equity securities. The plan keeps a minimal amount of cash available to fund benefit
payments. These investments may include funds of multiple asset investment strategies and funds of hedge funds.

54 AVIENT CORPORATION

The fair values of pension plan assets at December 31, 2021 and 2020, by asset category, are as follows:

Fair Value of Plan Assets at December 31, 2021

Quoted
Prices in
Active
Markets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Total
Investments
(at Fair Value)

6.5

— $

68.3

10.6

—

85.4

—

3.1

—

15.3

6.5

68.3

10.6

18.4

103.8

32.7

32.1

16.5

344.2

—

425.5

529.3

Fair Value of Plan Assets at December 31, 2020

Quoted
Prices in
Active
Markets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Total
Investments
(at Fair Value)

8.2

— $

53.4

4.5

—

66.1

—

3.1

—

17.4

8.2

53.4

4.5

20.5

86.6

35.2

34.0
16.3

383.8
17.7
487.0

573.6

(In millions)
Asset category
Cash

Bonds and Notes

Global Equity

Other

Total

Investments measured at NAV:

Common collective funds:

United States equity

International equity

Global equity

Fixed income

Balanced

Total common collective funds

Total investments at fair value

(In millions)
Asset category
Cash

Bonds and Notes

Global Equity

Other

Total

Investments at NAV

Common collective funds

United States equity

International equity

Global equity
Fixed income

Balanced

Total common collective funds

Total investments at fair value

Pension Plan Assets

Other assets are primarily insurance contracts for international plans. The U.S. equity common collective funds are
predominately invested in equity securities actively traded in public markets. The international and global equity
common collective funds have broadly diversified investments across economic sectors and focus on low volatility,

55 AVIENT CORPORATION

long-term investments. The fixed income common collective funds consist primarily of publicly traded United States
fixed interest obligations (principally investment grade bonds and government securities).

Level 1 assets are valued based on quoted market prices. Level 2 investments are valued based on quoted market
prices and/or other market data for the same or comparable instruments and transactions of the underlying fixed
income investments. The insurance contracts included in the other asset category are valued at the transacted
price. Common collective funds are valued at the net asset value of units held by the fund at year end. The unit
value is determined by the total value of fund assets divided by the total number of units of the fund owned.

The estimated future benefit payments for our pension and health care plans are as follows:

(In millions)
2022
2023
2024
2025
2026
2027 through 2031

Pension Benefits
43.6
$
41.8
39.9
39.5
38.8
179.1

Health Care
benefits

1.2
1.3
1.3
1.3
1.2
5.2

We currently estimate that employer contributions will be $8.2 million to all qualified and non-qualified pension plans
and $1.2 million to all healthcare benefit plans in 2022.

The Company sponsors various voluntary retirement savings plans (RSP). Under the provisions of the plans,
eligible employees receive defined Company contributions and are eligible for Company matching contributions
based on their eligible earnings contributed to the plan. In addition, we may make discretionary contributions to the
plans for eligible employees based on a specific percentage of each employee’s compensation.

Following are our contributions to the RSP:

(In millions)
Retirement savings match
Retirement savings contribution

Total contribution

2021

2020

2019

10.7
—
10.7

9.9
0.6
10.5

10.4
—
10.4

Note 12 — COMMITMENTS AND CONTINGENCIES

Environmental — We have been notified by federal and state environmental agencies and by private parties that
we may be a potentially responsible party (PRP) in connection with the environmental investigation and remediation
of certain sites. While government agencies frequently assert that PRPs are jointly and severally liable at these
sites, in our experience, the interim and final allocations of liability costs are generally made based on the relative
contribution of waste. We may also initiate corrective and preventive environmental projects of our own to ensure
safe and lawful activities at our operations. We believe that compliance with current governmental regulations at all
levels will not have a material adverse effect on our financial position, results of operations or cash flows.

In September 2007, the United States District Court for the Western District of Kentucky (Court) in the case of
Westlake Vinyls, Inc. v. Goodrich Corporation, et al., held that we must pay the remediation costs at the former
Goodrich Corporation Calvert City facility (now largely owned and operated by Westlake Vinyls, Inc. (Westlake
Vinyls)), together with certain defense costs of Goodrich Corporation. The rulings also provided that we can seek
indemnification for contamination attributable to Westlake Vinyls.

Following the rulings, the parties to the litigation agreed to settle all claims regarding past environmental costs
incurred at the site. The settlement agreement provides a mechanism to pursue allocation of future remediation
costs at the Calvert City site to Westlake Vinyls. We will adjust our accrual, in the future, consistent with any such
future allocation of costs. Additionally, we continue to pursue available insurance coverage related to this matter and
recognize gains as we receive reimbursement.

The environmental obligation at the site arose as a result of an agreement between The B.F. Goodrich Company (n/
k/a Goodrich Corporation) and our predecessor, The Geon Company, at the time of the initial public offering in 1993.
Under the agreement, The Geon Company agreed to indemnify Goodrich Corporation for certain environmental
costs at the site. Neither the Company nor The Geon Company ever operated the facility.

56 AVIENT CORPORATION

Since 2009, the Company, along with respondents Westlake Vinyls, and Goodrich Corporation, has worked with the
United States Environmental Protection Agency (USEPA) on the remedial activities at the site. The USEPA issued
its Record of Decision (ROD) in September 2018, selecting a remedy consistent with our accrual assumptions. In
April 2019, the respondents signed an Administrative Settlement Agreement and Order on Consent with the USEPA
to conduct the remedial actions at the site. In February 2020, the three companies signed the agreed Consent
Decree and remedial action Work Plan, which received Federal Court approval
in January 2021. Our current
reserve totals $113.2 million for this matter.

Our Consolidated Balance Sheets include accruals totaling $124.5 million and $119.7 million as of December 31,
2021 and 2020, respectively, based on our estimates of probable future environmental expenditures relating to
previously contaminated sites. These undiscounted amounts are included in Accrued expenses and other current
liabilities and Other non-current
liabilities on the accompanying Consolidated Balance Sheets. The accruals
represent our best estimate of probable future costs that we can reasonably estimate, based upon currently
available information and technology and our view of the most likely remedy. Depending upon the results of future
testing, completion and results of remedial investigation and feasibility studies, the ultimate remediation alternatives
undertaken, changes in regulations, technology development, new information, newly discovered conditions and
other factors, it is reasonably possible that we could incur additional costs in excess of the amount accrued at
December 31, 2021. However, such additional costs, if any, cannot be currently estimated.

The following table details the changes in the environmental accrued liabilities:

(in millions)

Balance at beginning of the year

Environmental expenses

Net cash payments

Currency translation and other

Balance at the end of year

2021

2020

2019

119.7

112.0

23.0

(18.2)

—

20.4

(12.7)

—

124.5

119.7

111.9

10.2

(10.3)

0.2

112.0

The environmental expenses noted in the table above are included in Cost of sales as are insurance recoveries
received for previously incurred environmental costs. We received insurance recoveries of $4.5 million, $8.7 million,
and $4.5 million in 2021, 2020 and 2019, respectively. Such insurance recoveries are recognized as a gain when
received.

Other Litigation — Avient is subject to a broad range of claims, administrative and legal proceedings such as
lawsuits that relate to contractual allegations, tax audits, product claims, personal injuries, and employment related
matters. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company
believes our current reserves are appropriate and these matters will not have a material adverse effect on the
condensed consolidated financial statements.

Note 13 — INCOME TAXES
Income from continuing operations, before income taxes is summarized below based on the geographic location of
the operation to which such earnings are attributable.

Income from continuing operations, before income taxes consists of the following:

(In millions)
Domestic

International

Income from continuing operations, before income taxes

2021

2020

2019

74.2

19.6

230.4

119.4

304.6

139.0

41.2

68.2

109.4

57 AVIENT CORPORATION

A summary of income tax expense from continuing operations is as follows:

(In millions)
Current income tax expense (benefit):

Domestic
International

Total current income tax expense

Deferred income tax (benefit) expense:

Domestic
International

Total deferred income tax benefit
Total income tax expense

2021

2020

2019

$
$

49.0
52.3

101.3

(31.5) $
4.2
(27.3) $
$
74.0

(25.8) $
32.7

6.9

17.2
(18.9)

(1.7) $
$
5.2

24.8
21.9

46.7

(12.5)
(0.5)
(13.0)
33.7

We elected to recognize the resulting tax on global
intangible income (FDII) as a period expense in the period in which the tax is incurred.

intangible low-taxed income (GILTI) and foreign-derived

Federal statutory income tax rate

International tax rate differential:

Asia

Europe

North and South America

Total international tax rate differential

(Benefit) Tax on GILTI and FDII

International tax on certain current and prior year earnings

Net impact of non-deductible acquisition earnouts and transaction cost

Tax on one-time gain from sale of other assets

Research and development credit

Carryback of capital losses

State and local tax, net

International permanent items

Net impact of uncertain tax positions

Changes in valuation allowances

Other

Effective income tax rate

2021

2020

2019

21.0 %

0.3

(1.2)

0.7

(0.2)

(1.7)

1.4

0.1

—

(0.8)

(0.4)

1.4

0.2

0.7

1.7

0.9

0.5

(4.4)

1.2

(2.7)

3.1

2.0

1.8

—

(2.1)

(13.1)

(3.4)

(5.2)

1.0

0.5

0.8

0.7

(10.3)

0.7

(8.9)

(0.1)

1.6

2.8

6.0

(2.8)

—

4.2

7.5

(2.4)

1.7

0.2

24.3 %

3.7 %

30.8 %

The effective tax rates for all periods differed from the applicable U.S. federal statutory tax rate as a result of
permanent items, state and local
income taxes, differences in international tax rates and certain other items.
Permanent items primarily consist of income or expense not taxable or deductible. Significant or other items
impacting the effective income tax rate are described below.

2021 Significant items

We recognized a U.S. tax benefit of $5.5 million (1.7%) from decreased Tax on GILTI and FDII arising from higher
domestic income.

State and local tax, net totaled expense of $4.2 million (1.4%), which resulted from normal operations.

International permanent items included the favorable tax effect of notional interest deductions and a change in a
foreign tax rate. Offsetting these items were withholding taxes on intercompany foreign-to-foreign income and
deferred tax adjustments which resulted in a net unfavorable tax impact of $0.6 million (0.2%).

58 AVIENT CORPORATION

2020 Significant items

We recognized a tax benefit of $18.2 million (13.1%) from a carryback of capital losses.

State and local tax, net totaled a benefit of $4.7 million (3.4%), which included favorable prior year tax provision
adjustments and a state tax benefit from a carryback of capital losses.

International permanent
favorable tax
treatment of foreign exchanges losses, offset by non-deductibility of interest expense related to the receipt of tax-
exempt dividends, which resulted in a net favorable tax impact of $7.2 million (5.2%).

items included the favorable tax effect of notional

interest deductions,

2019 Significant items

State and local tax, net included the result from an unfavorable state tax audit decision combined with higher
domestic earnings in 2019.

International permanent items included the tax effect of non-deductibility of interest expense related to the receipt of
tax-exempt dividends, which resulted in an unfavorable tax effect of $10.3 million (9.4%) partially offset by the tax
impact of other net favorable permanent items of $2.0 million (1.9%).

Net impact of uncertain tax positions line resulted from the expiration of statute of limitations and favorable tax
settlements.

Components of our deferred tax assets (liabilities) as of December 31, 2021 and 2020 were as follows:

(In millions)
Deferred tax assets:
Employment costs

Environmental reserves
Net operating loss carryforwards
Operating leases
Research and development
Other, net

Gross deferred tax assets

Valuation allowances

Total deferred tax assets, net of valuation allowances

Deferred tax liabilities:

Property, plant and equipment
Goodwill and intangibles
Operating leases
Other, net

Total deferred tax liabilities

Net deferred tax (liabilities) assets

Consolidated Balance Sheets:

Non-current deferred income tax assets
Non-current deferred income tax liabilities

2021

2020

34.2
30.9
52.8
16.1
22.0
45.7
201.7
(19.6)
182.1

(47.4) $

(130.6)
(16.2)
(15.0)
(209.2) $

)
(27.1) $
(

73.5
$
(100.6) $

24.9
29.7
55.6
16.6
7.6
36.3
170.7
(20.7)
150.0

(47.6)
(144.9)
(17.0)
(2.4)
(211.9)

)
(61.9)
(

78.1
(140.0)

$
$

As of December 31, 2021, we had gross state net operating loss carryforwards of $17.8 million that expire between
2022 and 2041 or that have indefinite carryforward periods. Various international subsidiaries have gross net
operating loss carryforwards totaling $195.4 million that expire between 2022 and 2039 or that have indefinite
carryforward periods. Total tax valuation allowances decreased $1.1 million from the prior year primarily due to a
decrease in the valuation allowance associated with certain assets acquired in the acquisition of Clariant Color. We
have provided valuation allowances of $11.9 million against certain international and state net operating loss
carryforwards that, as of this time, are expected to expire prior to utilization.

As of December 31, 2021, no tax provision has been made on approximately $489 million of undistributed earnings
of certain non-U.S. subsidiaries as these amounts continue to be indefinitely reinvested consistent with our policy.
The ending balance of international tax on certain current and prior year earnings accrual as of December 31, 2021
and 2020 included in the Other, net deferred tax liabilities line in the table above are $10.1 million and $9.2 million,
respectively.

59 AVIENT CORPORATION

We made worldwide income tax payments of $102.1 million, $188.8 million, and $45.7 million in 2021, 2020, and
2019, respectively. We received refunds of $12.6 million, $9.9 million, and $20.0 million in 2021, 2020, and 2019,
respectively.

The Company records tax provisions for uncertain tax positions in accordance with FASB ASC Topic 740, Income
Taxes. A reconciliation of unrecognized tax benefits is as follows:

(In millions)
Balance as of January 1,

Increases as a result of positions taken during current year

Increases as a result of positions taken for prior years

Balance related to acquired businesses

Reductions for tax positions of prior years

Decreases as a result of lapse of statute of limitations

Decreases relating to settlements with taxing authorities

Other, net

Balance as of December 31,

Unrecognized Tax Benefits

2021

2020

2019

11.2

9.5

6.2

0.2

5.4

—

(1.5)

(0.1)

0.4

20.1

0.6

—

(0.5)

(2.8)

0.4

9.5

16.4

1.1

0.4

—

(0.7)

(5.0)

—

(1.0)

11.2

We recognize interest and penalties related to uncertain tax positions in the tax provision. As of December 31, 2021
and 2020, we had $1.2 million and $1.1 million accrued for interest and penalties, respectively.

Although the timing and outcome of tax settlements are uncertain, it is reasonably possible that during the next
twelve months a reduction in unrecognized tax benefits may occur up to $0.7 million based on the outcome of tax
examinations and the expiration of statutes of limitations.

If all unrecognized tax benefits were recognized, the net impact on the tax provision would be a benefit of
$10.9 million.

The Company is currently being audited by state and international taxing jurisdictions. With limited exceptions, we
are no longer subject to U.S. federal, state and international tax examinations for periods preceding 2017.

For the income tax impact associated with PP&S, refer to Note 3, Discontinued Operations.

Note 14 — SHARE-BASED COMPENSATION

Share-based compensation cost is based on the value of the portion of share-based payment awards that are
ultimately expected to vest during the period. Share-based compensation cost recognized in the accompanying
Consolidated Statements of Income includes compensation cost for share-based payment awards based on the
grant date fair value estimated in accordance with the provision of FASB ASC Topic 718, Compensation — Stock
Compensation. Share-based compensation expense is based on awards expected to vest and therefore has been
reduced for estimated forfeitures.

Equity and Performance Incentive Plans

In May 2020, our shareholders approved the Avient Corporation 2020 Equity and Incentive Compensation Plan
(2020 EICP). This plan reserved 2.5 million common shares for the award of a variety of share-based compensation
alternatives, including non-qualified stock options, incentive stock options, restricted stock, restricted stock units
(RSUs), performance shares, performance units and stock appreciation rights (SARs). It is anticipated that all
share-based grants and awards that are earned and exercised will be issued from Avient common shares that are
held in treasury.

60 AVIENT CORPORATION

Share-based compensation is included in Selling and administrative expense. A summary of compensation expense
by type of award follows:

(In millions)
Stock appreciation rights
Performance shares
Restricted stock units
Total share-based compensation

Stock Appreciation Rights

2021

2020

2019

5.2
0.2
5.8
11.2

4.4
0.2
6.7
11.3

4.8
0.3
6.5
11.6

During the years ended December 31, 2021, 2020 and 2019, the total number of SARs granted was 0.5 million, 0.5
million and 0.6 million, respectively. Awards vest in one-third increments upon the later of the attainment of time-
based vesting over a three-year service period and stock price targets. Awards granted in 2021, 2020 and 2019 are
subject to an appreciation cap of 200% of the base price. SARs have contractual terms of ten years from the date of
the grant.

The SARs were valued using a Monte Carlo simulation method as the vesting is dependent on the achievement of
certain stock price targets. The SARs have time and market-based vesting conditions but vest no earlier than their
three year graded vesting schedule. The expected term is an output from the Monte Carlo model and is derived
from employee exercise assumptions that are based on Avient historical exercise experience. The expected
volatility was determined based on the average weekly volatility for our common shares for the contractual life of the
awards. The expected dividend assumption was determined based upon Avient's dividend yield at the time of grant.
The risk-free rate of return was based on available yields on U.S. Treasury bills of the same duration as the
contractual life of the awards. Forfeitures were estimated at 3% per year based on our historical experience.

The following is a summary of the weighted average assumptions related to the grants issued during 2021, 2020
and 2019:

Expected volatility
Expected dividends
Expected term (in years)
Risk-free rate
Value of SARs granted

2021
34.0%
2.01%
6.9
1.19%
$11.72

2020
33.0%
2.57%
6.9
1.56%
$8.11

2019
40.0%
2.47%
6.6
2.78%
$10.13

A summary of SAR activity for 2021 is presented below:

(In millions, except per share data)
Outstanding as of January 1, 2021
Granted
Exercised
Forfeited or expired
Outstanding as of December 31, 2021

Vested and exercisable as of December 31, 2021

Weighted-
Average
Exercise Price
per Share

Weighted-
Average
Remaining
Contractual
Term

Aggregate
Intrinsic
value

2.6
0.5
(1.2)
—

1.9

0.9

32.43
42.27
30.00
30.43

35.64

33.86

6.4 $

20.7

7.1 $

5.4 $

39.1

19.6

The total
intrinsic value of SARs exercised during 2021, 2020 and 2019 was $22.9 million, $1.8 million and
$0.4 million, respectively. As of December 31, 2021, there was $3.3 million of total unrecognized compensation cost
related to SARs, which is expected to be recognized over the weighted average remaining vesting period of 23
months.

Restricted Stock Units

RSUs represent contingent rights to receive one common share at a future date provided certain vesting criteria are
met.

During 2021, 2020 and 2019, the total number of RSUs granted was 0.2 million, 0.3 million and 0.2 million,
respectively. In 2021, 0.2 million RSUs vested. These RSUs, which generally vest on the third anniversary of the

61 AVIENT CORPORATION

grant date, were granted to executives and other key employees. Compensation expense is measured on the grant
date using the quoted market price of our common shares and is recognized on a straight-line basis over the
requisite service period.

As of December 31, 2021, 0.6 million RSUs remain unvested with a weighted-average grant date fair value of
$33.23. Unrecognized compensation cost for RSUs at December 31, 2021 was $7.4 million, which is expected to be
recognized over the weighted average remaining vesting period of 21 months.

Note 15 — SEGMENT INFORMATION

Operating income is the primary measure that is reported to our chief operating decision maker (CODM) for
purposes of allocating resources to the segments and assessing their performance. Operating income at the
segment level does not include: corporate general and administrative expenses that are not allocated to segments;
intersegment sales and profit eliminations; charges related to specific strategic initiatives such as the consolidation
of operations; restructuring activities,
including employee separation costs resulting from personnel reduction
programs, plant closure and phase-in costs; executive separation agreements; share-based compensation costs;
asset impairments; environmental remediation costs, along with related gains from insurance recoveries, and other
liabilities for facilities no longer owned or closed in prior years; gains and losses on the divestiture of joint ventures
and equity investments; actuarial gains and losses associated with our pension and other post-retirement benefit
plans; and certain other items that are not included in the measure of segment profit or loss that is reported to and
reviewed by our CODM. These costs are included in Corporate and eliminations.

Segment assets are primarily customer receivables, inventories, net property, plant and equipment, intangible
assets and goodwill. Intersegment sales are generally accounted for at prices that approximate those for similar
transactions with unaffiliated customers. Corporate and eliminations assets and liabilities primarily include cash,
debt, pension and other employee benefits, environmental liabilities, retained assets and liabilities of discontinued
operations, and other unallocated corporate assets and liabilities. The accounting policies of each segment are
consistent with those described in Note 1, Description of Business and Summary of Significant Accounting Policies.

Avient has three reportable segments. The following is a description of each reportable segment.

Color, Additives and Inks

Color, Additives and Inks is a leading formulator of specialized custom color and additive concentrates in solid and
liquid form for thermoplastics, dispersions for thermosets, as well as specialty inks. Color and additive solutions
include an innovative array of colors, special effects and performance-enhancing and sustainable solutions. When
combined with polymer resins, our solutions help customers achieve differentiated specialized colors and effects
targeted at the demands of today’s highly design-oriented consumer and industrial end markets. Our additive
concentrates encompass a wide variety of performance and process enhancing characteristics and are commonly
categorized by the function that they perform, including UV light stabilization and blocking, antimicrobial, anti-static,
blowing or foaming, antioxidant, lubricant, oxygen and visible light blocking and productivity enhancement. Of
growing importance is our portfolio of additives that enable our customers to achieve their sustainability goals,
including improved recyclability, reduced energy use, light weighting, and renewable energy applications. Our
colorant and additives concentrates are used in a broad range of polymers, including those used in medical and
pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and
cable markets. We also provide custom-formulated liquid systems that meet a variety of customer needs and
chemistries, including polyester, vinyl, natural rubber and latex, polyurethane and silicone. Our offerings also include
proprietary inks and latexes for diversified markets such as recreational and athletic apparel, construction and
filtration, outdoor furniture and healthcare. Our liquid polymer coatings and additives are largely based on vinyl and
are used in a variety of markets, including consumer, packaging, healthcare, industrial, transportation, building and
construction, wire and cable,
textiles and appliances. Color, Additives and Inks has manufacturing, sales and
service facilities located throughout North America, South America, Asia, Europe, Middle East, and Africa.

Specialty Engineered Materials

Specialty Engineered Materials is a leading formulator of specialty and sustainable polymer formulations, services
and solutions for designers, assemblers and processors of thermoplastic materials across a wide variety of markets
and end-use applications. Our product portfolio, which we believe to be one of the most diverse in our industry,
includes specialty formulated high-performance polymer materials that are manufactured using thermoplastic resins
and elastomers, which are then combined with advanced polymer additives, reinforcement, filler, colorant and/or
biomaterial technologies. We also have what we believe is the broadest composite platform of solutions, which
include a full range of products from long glass and carbon fiber technology to thermoset and thermoplastic
composites. These solutions meet a wide variety of unique customer requirements for sustainability, in particular

62 AVIENT CORPORATION

light weighting. Our technical and market expertise enables us to expand the performance range and structural
properties of
traditional engineering-grade thermoplastic resins to meet evolving customer needs. Specialty
Engineered Materials has manufacturing, sales and service facilities located throughout North America, Europe, and
Asia. Our product development and application reach is further enhanced by the capabilities of our Innovation
Centers in the United States, Germany and China, which produce and evaluate prototype and sample parts to help
assess end-use performance and guide product development. Our manufacturing capabilities are targeted at
meeting our customers’ demand for speed, flexibility and critical quality.

Distribution

The Distribution business distributes more than 4,000 grades of engineering and commodity grade resins, including
Avient-produced solutions, principally to the North American, Central American and Asian markets. These products
are sold to over 6,500 custom injection molders and extruders who, in turn, convert them into plastic parts that are
sold to end-users in a wide range of industries. Representing over 25 major suppliers, we offer our customers a
broad product portfolio, just-in-time delivery from multiple stocking locations and local technical support. Expansion
in Central America and Asia have bolstered Distribution's ability to serve the specialized needs of customers
globally.

Financial information by reportable segment is as follows:

(In millions)

Year Ended December 31, 2021
Color, Additives and Inks

Specialty Engineered Materials

Distribution

Corporate and eliminations

Total

Year Ended December 31, 2020
Color, Additives and Inks

Specialty Engineered Materials

Distribution

Corporate and eliminations

Total

Year Ended December 31, 2019
Color, Additives and Inks

Specialty Engineered Materials

Distribution

Corporate and eliminations

Total

Sales to
External
Customers

Intersegment
Sales

Total
Sales

Operating
Income

Depreciation
and
Amortization

Capital
Expenditures

$ 2,392.3

9.3

$ 2,401.6

303.1

105.7

833.2

1,587.3

6.0

85.7

43.6

918.9

1,630.9

132.0

93.2

(138.6)

(132.6)

(147.1)

31.7

0.8

7.7

40.5

26.4

0.8

32.9

$ 4,818.8

— $ 4,818.8

381.2

145.9

100.6

Sales to
External
Customers

Intersegment
Sales

Total
Sales

Operating
Income

Depreciation
and
Amortization

Capital
Expenditures

$ 1,497.0

5.9

$ 1,502.9

180.8

75.1

644.1

1,087.4

13.6

64.7

22.9

708.8

1,110.3

94.4

69.5

(93.5)

(79.9)

(155.4)

30.0

0.7

9.2

$ 3,242.1

— $ 3,242.1

189.3

115.0

30.5

14.2

1.4

17.6

63.7

Sales to
External
Customers

Intersegment
Sales

Total
Sales

Operating
Income

Depreciation
and
Amortization

Capital
Expenditures

998.2

5.6

$ 1,003.8

147.4

42.7

689.6

1,172.9

2.0

56.1

19.3

745.7

1,192.2

83.7

75.4

(81.0)

(79.0)

(149.7)

29.5

0.5

5.4

$ 2,862.7

— $ 2,862.7

156.8

78.1

21.5

23.3

1.6

21.2

67.6

63 AVIENT CORPORATION

Our sales are primarily to customers in the United States, Canada, Mexico, Europe, South America and Asia, and
the majority of our assets are located in these same geographic areas. The following is a summary of sales and
long-lived assets based on the geographic areas where the sales originated and where the assets are located:

(In millions)
Sales:

United States

Canada

Mexico

South America

Europe

Asia

Total Sales

Total Assets:

Color, Additives and Inks

Specialty Engineered Materials

Distribution

Corporate and eliminations

Total

Property, net:

United States

Canada

Mexico

South America

Europe

Asia

2021

2020

2019

2,281.2

1,619.7

1,560.4

151.8

348.2

85.8

1,195.6

756.2

107.6

236.2

51.4

729.8

497.4

140.6

261.2

27.8

556.2

316.5

4,818.8

3,242.1

2,862.7

2021

2020

2,965.2

3,018.7

771.0

384.9

876.1

728.1

244.9

878.8

4,997.2

4,870.5

2021

2020

276.2

261.8

1.3

8.3

19.6

172.4

198.3

1.4

8.9

20.1

224.5

178.2

694.9

Total Long lived assets

676.1

Note 16 — 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. We formally assess,
designate and document, as a hedge of an underlying exposure, the qualifying derivative instrument that will be
accounted for as an accounting hedge at inception. Additionally, we assess both at inception and at least quarterly
thereafter, whether the financial instruments used in the hedging transaction are effective at offsetting changes in
either the fair values or cash flows of the underlying exposures and that ongoing assessment will be done
qualitatively for highly effective relationships.

Net Investment Hedge

During October and December 2018, as a means of mitigating the impact of currency fluctuations on our Euro
investments in foreign entities, we executed a total of six cross currency swaps, in which we will pay fixed-rate
interest in Euros and receive fixed-rate interest in U.S. dollars with a combined notional amount of 250.0 million
Euros and which mature in March 2023. In August and September 2020, we executed an additional five cross
currency swaps, which are structured similarly to those executed in 2018. These swaps have a combined notional
In September 2021, we executed five cross
amount of 677.0 million Euros, which were set to mature in May 2025.
currency swap transactions that extended the length of the 2020 swaps agreements through 2028. Additionally, we
entered into three new cross currency swaps with a combine notional amount of 338.7 million euros that also
to Euro
mature in 2028. These effectively convert a portion of our U.S. Dollar denominated fixed-rate debt

64 AVIENT CORPORATION

denominated fixed-rate debt. That conversion resulted in gains of $16.4 million and $10.4 million for the years
ended December 31, 2021 and 2020, respectively, which was recognized within Interest expense, net.

We designated the swaps as net investment hedges of our net investment in our European operations and applied
the spot method to these hedges. The changes in fair value of the derivative instruments that are designated and
qualify as hedges of net investments in foreign operations are recognized within Accumulated Other Comprehensive
Income (Loss) (AOCI) to offset the changes in the values of the net investment being hedged. For the years ended
December 31, 2021 and 2020, a gain of $52.5 million and a loss of $41.7 million, respectively, were recognized
within translation adjustments in AOCI, net of tax.

Derivatives Designated as Cash Flow Hedging Instruments

In August 2018, we entered into two interest rate swaps with a combined notional amount of $150.0 million to
manage the variability of cash flows in the interest rate payments associated with our existing LIBOR-based interest
payments, effectively converting $150.0 million of our floating rate debt to a fixed rate. We began to receive floating
rate interest payments based upon one month U.S. dollar LIBOR and in return are obligated to pay interest at a
fixed rate of 2.732% until November 2022. The net interest payments accrued each month for these highly effective
hedges are reflected in net income as adjustments of interest expense and the remaining change in the fair value of
the derivatives is recorded as a component of AOCI. The amount of expense recognized within Interest expense,
net, associated with interest rate swaps was $4.0 million and $3.2 million for the years ending December 31, 2021
and 2020, respectively. The amount recognized in AOCI, net of tax was a gain of $3.2 million and loss of $1.6 million
for the years ended December 31, 2021 and 2020, respectively.

All of our derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value
hierarchy. We determine the fair value of our derivatives based on valuation methods, which project future cash
flows and discount the future amounts present value using market based observable inputs, including interest rate
curves and foreign currency rates. The fair value of derivative financial instruments recognized in the Condensed
Consolidated Balance Sheets as of December 31, 2021 and 2020 is as follows:

(In millions)

Assets

Balance Sheet Location

2021

2020

Cross Currency Swaps (Net Investment Hedge) Other non-current assets

Liabilities

Cross Currency Swaps (Net Investment Hedge) Other non-current liabilities

Interest Rate Swap (Fair Value Hedge)

Other current liabilities

Interest Rate Swap (Fair Value Hedge)

Other non-current liabilities

31.7

— $

3.1

— $

—

41.1

—

7.3

65 AVIENT CORPORATION

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure controls and procedures

Avient’s management, with the participation of the Chief Executive Officer and the Chief Financial Officer, has
evaluated the effectiveness of the design and operation of Avient’s disclosure controls and procedures (as defined
in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2021. Based on this evaluation, the
Chief Executive Officer and the Chief Financial Officer have concluded that our disclosure controls and procedures
were effective as of December 31, 2021.

Management’s Annual Report On Internal Control Over Financial Reporting

The following report is provided by management in respect of Avient’s internal control over financial reporting (as
defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act):

1. Avient’s management is responsible for establishing and maintaining adequate internal control over financial

reporting.

2. Under the supervision of and with participation of Avient’s management, including the Chief Executive Officer
and the Chief Financial Officer, we conducted an evaluation of the effectiveness of internal control over
financial reporting as of December 31, 2021 based on the guidelines established in Internal Control -
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) (2013 Framework). Management believes that the 2013 Framework is a suitable framework for its
evaluation of financial reporting because it is free from bias, permits reasonably consistent qualitative and
quantitative measurements of Avient’s internal control over financial reporting, is sufficiently complete so that
those relevant factors that would alter a conclusion about the effectiveness of Avient’s internal control over
financial reporting are not omitted and is relevant to an evaluation of internal control over financial reporting.

3. Based on the results of our evaluation, management has concluded that such internal control over financial
reporting was effective as of December 31, 2021. There were no material weaknesses in internal control over
financial reporting identified by management. The results of management's assessment were reviewed with
our Audit Committee.

4. Ernst & Young LLP, who audited the consolidated financial statements of Avient

for the year ended
December 31, 2021, also issued an attestation report on Avient’s internal control over financial reporting under
Auditing Standard No. 2201 of the Public Company Accounting Oversight Board. This attestation report is set
forth on page 31 of this Annual Report on Form 10-K and is incorporated by reference into this Item 9A.

Changes in internal control over financial reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the quarter
ended December 31, 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s
internal control over financial reporting.

Limitations in internal control over financial reporting

66 AVIENT CORPORATION

ITEM 9B. OTHER INFORMATION

None.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

67 AVIENT CORPORATION

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information regarding Avient’s directors, including the identification of the audit committee and audit committee
financial experts, is incorporated by reference to the information contained in Avient’s Proxy Statement with respect
to the 2022 Annual Meeting of Shareholders (2022 Proxy Statement). Information concerning executive officers is
contained in Part I of this Annual Report on Form 10-K under the heading “Information About Our Executive
Officers.”

The information regarding any changes in procedures by which shareholders may recommend nominees to Avient’s
Board of Directors is incorporated by reference to the information contained in the 2022 Proxy Statement.

Avient has adopted a code of ethics that applies to its principal executive officer, principal financial officer and
principal accounting officer. Avient’s code of ethics is posted under the Corporate Governance tab of the Investor
Relations page of its website at www.avient.com. Avient will post any amendments to, or waivers of, its code of
ethics that apply to its principal executive officer, principal financial officer and principal accounting officer on its
website.

ITEM 11. EXECUTIVE COMPENSATION

The information regarding executive officer and director compensation is incorporated by reference to the
information contained in the 2022 Proxy Statement.

The information regarding compensation committee interlocks and insider participation and the compensation
committee report is incorporated by reference to the information contained in the 2022 Proxy Statement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
SHAREHOLDER MATTERS

Number of securities to be
issued upon exercise of
outstanding options, warrants
and rights (1)

Weighted-average exercise
price of outstanding options,
warrants and rights(2)

Number of securities remaining
available for future issuance
under equity compensation
plans (excluding securities
reflected in column (a))(3)

Plan category

(a)

Equity compensation plans
approved by security
holders

Equity compensation plans
not approved by security
holders

Total

2,501,061

—

2,501,061

(b)

$35.64

—

$35.64

(c)

2,340,343

—

2,340,343

(1) This amount represents shares of common stock underlying awards that have been granted under the terms of the PolyOne

Corporation 2017 Equity and Incentive Compensation Plan and the Avient Corporation 2020 Equity and Incentive
Compensation Plan (the 2020 EICP), including 1,882,991 shares issuable pursuant to outstanding stock appreciation rights
(SARs) (assuming target achievement) and 618,070 shares issuable pursuant to outstanding restricted stock unit (RSU)
awards.

(2) Reflects the weighted-average exercise price of SARs, and does not take into account RSUs, as such awards have no

exercise price.

(3) In addition to options, warrants and rights, the the 2020 EICP authorizes the issuance of restricted stock, RSUs and

performance shares. This amount represents shares of common stock remaining available for future awards under the 2020
EICP.

The information regarding security ownership of certain beneficial owners is incorporated by reference to the
information contained in the 2022 Proxy Statement.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information regarding certain relationships and related transactions and director independence is incorporated
by reference to the information contained in the 2022 Proxy Statement.

68 AVIENT CORPORATION

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Information regarding fees paid to and services provided by Avient’s independent registered public accounting firm
and the pre-approval policies and procedures of the audit committee is incorporated by reference to the information
contained in the 2022 Proxy Statement.

69 AVIENT CORPORATION

PART IV

ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULES

(a)(1) Financial Statements:

The following consolidated financial statements of Avient Corporation are included in Item 8:

Consolidated Statements of Income for the years ended December 31, 2021, 2020 and 2019

Consolidated Statements of Comprehensive Income for the years ended December 31, 2021, 2020 and 2019

Consolidated Balance Sheets at December 31, 2021 and 2020

Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020 and 2019

Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2021, 2020 and 2019

Notes to Consolidated Financial Statements

All other schedules for which provision is made in Regulation S-X of the SEC are not required under the related
instructions or are inapplicable and, therefore, have been omitted.

(a)(3) Exhibits:

Exhibit No.

Exhibit Description

2.1†

3.1

3.2

4.1

4.2

4.3

10.1

10.2

10.3

10.4

10.5

10.6

10.7

Share Purchase Agreement, dated December 19, 2019, by and between PolyOne Corporation and Clariant AG
(incorporated by reference to Exhibit 2.3 to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2019, SEC File No. 1-16091).

Amended and Restated Articles of Incorporation of Avient Corporation (as amended through June 30, 2020)
(incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2020, SEC File No. 1-16091)

Amended and Restated Code of Regulations, effective June 30, 2020 (incorporated by reference to Exhibit 3.2 to the
Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, SEC File No. 1-16091)

Indenture, dated February 28, 2013, between PolyOne Corporation and Wells Fargo Bank, National Association, as
trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on March 5, 2013,
SEC File No. 1-16091)

Indenture, dated May 13, 2020, between PolyOne Corporation and U.S. Bank National Association, as trustee
(incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed on May 15, 2020, SEC
File No. 1-16091)

Description of Securities (incorporated by reference to Exhibit 4.2 to the Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 2019, SEC File No. 1-16091).

Third Amended and Restated Credit Agreement, dated June 28, 2019, by and among PolyOne Corporation, the
subsidiaries of PolyOne Corporation party thereto, Wells Fargo Capital Finance, LLC, as administrative agent, and the
various lenders and other agents party thereto (incorporated by reference to Exhibit 10.2 to the Company's Quarterly
Report on Form 10-Q for the quarter ended June 30, 2019, SEC File No. 1-16091.

First Amendment to Third Amended and Restated Credit Agreement, dated as of October 26, 2021, by and among the
lenders party thereto, Wells Fargo Capital Finance, LLC, as administrative agent for the lenders, Avient Corporation,
NEU Specialty Engineered Materials, LLC, Avient Canada ULC, and PolyOne S.à.r.l.(incorporated by reference to
Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, SEC File
No. 1-16091)

Credit Agreement, dated November 12, 2015, by and among PolyOne Corporation, as borrower, Citibank, N.A., as
administrative agent, each of Citigroup Global Markets Inc., Wells Fargo Securities LLC, Goldman, Sachs & Co.,
HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC, as joint-lead arrangers and joint-book managers,
Jefferies Finance LLC, KeyBanc Capital Markets Inc. and SunTrust Robinson Humphrey, Inc., as co-managers, and
several other commercial lending institutions that are parties thereto (incorporated by reference to Exhibit 10.6 to the
Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, SEC File No. 1-16091)

Amendment Agreement No. 1 to the Credit Agreement, dated as of June 15, 2016, among the Company, certain
subsidiaries of the Company, Citibank, N.A., as administrative agent, and the additional lender party thereto
(incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended
June 30. 2016, SEC File No. 16091)

Amendment Agreement No. 2, dated August 3, 2016, by and among PolyOne Corporation, the subsidiaries of
PolyOne Corporation party thereto, Citibank, N.A, as administrative agent, and the lenders party thereto (incorporated
by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on August 5, 2016, SEC File No.
1-16091)

Amendment Agreement No. 3, dated January 24, 2017, by and among PolyOne Corporation, the subsidiaries of
PolyOne Corporation party thereto, Citibank, N.A., as administrative agent, and the lenders party thereto (incorporated
by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017,
SEC File No. 1-16091)

Amendment Agreement No. 4, dated August 15, 2017, by and among PolyOne Corporation, the subsidiaries of
PolyOne Corporation party thereto, Citibank, N.A., as administrative agent, and the lenders party thereto (incorporated
by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30,
2017, SEC File No. 1-16091)

70 AVIENT CORPORATION

10.8

10.9

10.10+

10.11+

10.12+

10.13+

10.14+

10.15+

10.16+**

10.17+

10.18

10.19+

10.20+

10.21+

10.22+

10.23+

10.24+

10.25+

Amendment Agreement No. 5, dated April 11, 2018, by and among PolyOne Corporation, the subsidiaries of PolyOne
Corporation party thereto, Citibank, N.A., as administrative agent, and the lenders party thereto (incorporated by
reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, SEC
File No. 1-16091)

Amendment Agreement No. 6, dated November 9, 2018, by and among PolyOne Corporation, the subsidiaries of
PolyOne Corporation party thereto, Citibank, N.A, as administrative agent, and the lenders party thereto (incorporated
by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on November 13, 2018, SEC File No.
1-16091)

Amended and Restated Avient Corporation 2010 Equity and Performance Incentive Plan (incorporated by reference to
Appendix B to the Company’s definitive proxy statement on Schedule 14A filed on April 3, 2015, SEC File No.
1-16091)

First Amendment to the Avient Supplemental Retirement Benefit Plan (As Amended and Restated Effective January 1,
2014), dated as of March 16, 2016; Amendment No. 2 to the Avient Supplemental Retirement Benefit Plan (As
Amended and Restated Effective January 1, 2014), dated as of December 19, 2018; and Amendment No. 3 to the
Avient Supplemental Retirement Benefit Plan (As Amended and Restated Effective January 1, 2014), dated as of April
18, 2019 (incorporated by reference to Exhibit 4.5 to the Company's Registration Statement on Form S-8, filed on May
6, 2019, SEC File No. 333-231236)

Avient 2017 Equity and Incentive Compensation Plan (incorporated by reference to Appendix B to the Company's
definitive proxy statement on Schedule 14A filed on March 31, 2017, SEC File No. 1-16091)

Avient Corporation Deferred Compensation Plan for Non-Employee Directors (As Amended and Restated Effective
July 15, 2021) (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2021, SEC File No. 1-16091)

Form of Management Continuity Agreement for Executive Officers prior to 2011 (incorporated by reference to
Exhibit 10.13 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007, SEC File
No. 1-16091)

Form of Management Continuity Agreement for Executive Officers after 2011 (incorporated by reference to Exhibit
10.12 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, SEC File No.
1-16091)

Schedule of Executive Officers with Management Continuity Agreements

Avient Supplemental Retirement Benefit Plan (As Amended and Restated Effective January 1, 2014) (incorporated by
reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31,
2013, SEC file No. 1-16091)

Assumption of Liabilities and Indemnification Agreement, dated March 1, 1993, amended and restated by Amended
and Restated Assumption of Liabilities and Indemnification Agreement, dated April 27, 1993 (incorporated by
reference to Exhibit 10.14 to The Geon Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 1996, SEC File No. 1-11804)

Executive Severance Plan, as amended and restated effective May 15, 2014 (incorporated by reference to
Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, SEC File
No. 1-16091)

Form of 2012 Award Agreement under the Avient Corporation 2010 Equity and Performance Incentive Plan, as
amended (incorporated by reference to Exhibit 10.38 to the Company’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2012, SEC File No. 1-16091)

Form of 2013 Award Agreement under the Avient Corporation 2010 Equity and Performance Incentive Plan, as
amended (incorporated by reference to Exhibit 10.27 to the Company’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2013, SEC File No. 1-16091)

Form of Director and Officer Indemnification Agreement (incorporated by reference to Exhibit 10.1 to the Company’s
Current Report on Form 8-K filed on July 5, 2006, SEC File No. 1-16091)

Form of 2014 Award Agreement under the Avient Corporation 2010 Equity and Performance Incentive Plan, as
amended (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter
ended June 30, 2014, SEC File No. 1-16091)

Avient Corporation 2020 Equity and Incentive Compensation Plan (incorporated by reference to Appendix B to the
Company’s definitive proxy statement on Schedule 14A filed on March 30, 2020, SEC File No. 1-16091).

Form of 2021 Award Agreement under the Avient Corporation 2020 Equity and Incentive Compensation Plan
(incorporated by reference to Exhibit 10.25 to the Company’s Annual Report on Form 10-K for the fiscal year ended
2020, SEC File No. 1-16091)

10.26+**

Form of 2022 Award Agreement under the Avient Corporation 2020 Equity and Incentive Compensation Plan

71 AVIENT CORPORATION

Exhibit No.

Exhibit Description

21.1**

23.1**

31.1**

31.2**

32.1**

32.2**

101 .INS**

101 .SCH**

101 .CAL**

101 .LAB**

101 .PRE**

101 .DEF**

104

Subsidiaries of the Company

Consent of Independent Registered Public Accounting Firm - Ernst & Young LLP

Certification of Robert M. Patterson, Chairman, President and Chief Executive Officer, pursuant to SEC
Rules 13a-14(a) and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Certification of Jamie A. Beggs, Senior Vice President and Chief Financial Officer, pursuant to SEC Rules 13a-14(a)
and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Certification pursuant to 18 U.S.C. § 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as
signed by Robert M. Patterson, Chairman, President and Chief Executive Officer

Certification pursuant to 18 U.S.C. § 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as
signed by Jamie A. Beggs, Senior Vice President and Chief Financial Officer

Inline XBRL Instance Document

Inline XBRL Taxonomy Extension Schema Document

Inline XBRL Taxonomy Extension Calculation Linkbase Document

Inline XBRL Taxonomy Extension Label Linkbase Document

Inline XBRL Taxonomy Extension Presentation Linkbase Document

Inline XBRL Taxonomy Definition Linkbase Document

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

†

Indicates management contract or compensatory plan, contract or arrangement in which one or more directors or executive officers of the
Registrant may be participants

Certain exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be provided to the Securities and
Exchange Commission upon request.

Filed herewith.

ITEM 16. FORM 10-K SUMMARY

None.

72 AVIENT CORPORATION

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SIGNATURES

AVIENT CORPORATION

February 22, 2022

BY:

/S/ JAMIE A. BEGGS

Jamie A. Beggs
Senior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities indicated and on the dates indicated.

Signature and Title

Chairman, President and Chief Executive Officer
(Principal Executive Officer)

February 22, 2022

Senior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

February 22, 2022

Director

February 22, 2022

/S/ ROBERT M. PATTERSON

Robert M. Patterson

/S/ JAMIE A. BEGGS

Jamie A. Beggs

/S/ ROBERT E. ABERNATHY

Robert E. Abernathy

/S/ RICHARD H. FEARON

Richard H. Fearon

/S/ GREGORY J. GOFF

Gregory J. Goff

/S/ NEIL GREEN

Neil Green

/S/ WILLIAM R. JELLISON

William R. Jellison

/S/ SANDRA BEACH LIN

Sandra Beach Lin

/S/ KIM ANN MINK

Kim Ann Mink

/S/ ERNEST NICOLAS

Ernest Nicolas

/S/ KERRY J. PREETE

Kerry J. Preete

/S/ PATRICIA VERDUIN

Patricia Verduin

/S/ WILLIAM A. WULFSOHN

William A. Wulfsohn

73 AVIENT CORPORATION

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Registration Statement (Form S-8 No. 333-238246) pertaining to the PolyOne Corporation 2020
Equity and Incentive Compensation Plan;

Registration Statement (Form S-8 No. 333-231236) pertaining to the PolyOne Supplemental
Retirement Benefit Plan (As Amended and Restated Effective January 1, 2014);

Registration Statement (Form S-8 No. 333-217879) pertaining to the PolyOne Corporation 2017
Equity and Incentive Compensation Plan;

Registration Statement (Form S-8 No. 333-205919) pertaining to the Amended and Restated
PolyOne Corporation 2010 Equity and Performance Incentive Plan;

Registration Statement (Form S-8 No. 333-181787) pertaining to the PolyOne Corporation 2010
Equity and Performance Incentive Plan;

Registration Statement (Form S-8 No. 333-166775) pertaining to the PolyOne Corporation 2010
Equity and Performance Incentive Plan;

Registration Statement (Form S-8 No. 333-157486) pertaining to the PolyOne Retirement
Savings Plan;

Registration Statement (Form S-8 No. 333-47796) pertaining to Post-Effective Amendment No. 3
on Form S-8 to Form S-4 pertaining to the Geon Company 1993 Incentive Stock Plan, the Geon
Company 1995 Incentive Stock Plan, the Geon Company 1998 Interim Stock Award Plan, the
Geon Company 1999 Incentive Stock Plan, the PolyOne Corporation Deferred Compensation
Plan for Non-Employee Directors and the M.A. Hanna Company Long-Term Incentive Plan;

Registration Statement (Form S-8 No. 333-141029) pertaining to the PolyOne Retirement
Savings Plan and the DH Compounding Company Savings and Retirement Plan and Trust; and

(10) Registration Statement (Form S-3 No. 333-236116) of PolyOne Corporation

of our reports dated February 22, 2022, with respect to the consolidated financial statements of Avient
Corporation and the effectiveness of internal control over financial reporting of Avient Corporation,
included in this Annual Report (Form 10-K) of Avient Corporation for the year ended December 31, 2021.

/s/ Ernst & Young LLP

Cleveland, Ohio

February 22, 2022

Exhibit 31.1

I, Robert M. Patterson, certify that:

1. I have reviewed this Annual Report on Form 10-K of Avient Corporation;

CERTIFICATION

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered
by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most
recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely
to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal
control over financial reporting.

/s/ Robert M. Patterson

Robert M. Patterson
Chairman, President and Chief Executive Officer

February 22, 2022

AVIENT CORPORATION

Exhibit 31.2

I, Jamie A. Beggs, certify that:

1. I have reviewed this Annual Report on Form 10-K of Avient Corporation;

CERTIFICATION

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal
control over financial reporting.

/s/

Jamie A. Beggs

Jamie A. Beggs
Senior Vice President and Chief Financial Officer

February 22, 2022

AVIENT CORPORATION

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Exhibit 32.1

In connection with the Annual Report on Form 10-K of Avient Corporation (the “Company”) for the year ended December 31, 2021, as filed with
the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert M. Patterson, Chairman, President and Chief Executive
Officer of the Company, do hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that,
to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the

Company as of the dates and for the periods expressed in the Report.

February 22, 2022

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate
disclosure document.

/s/ Robert M. Patterson

Robert M. Patterson
Chairman, President and Chief Executive Officer

AVIENT CORPORATION

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Exhibit 32.2

In connection with the Annual Report on Form 10-K of Avient Corporation (the “Company”) for the year ended December 31, 2021, as filed with
the Securities and Exchange Commission on the date hereof (the “Report”), I, Jamie A. Beggs, Senior Vice President and Chief Financial Officer
of the Company, do hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my
knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the

Company as of the dates and for the periods expressed in the Report.

February 22, 2022

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate
disclosure document.

Jamie A. Beggs

/s/
Jamie A. Beggs
Senior Vice President and Chief Financial Officer

AVIENT CORPORATION

THIS PAGE INTENTIONALLY LEFT BLANK

THIS PAGE IS NOT PART OF AVIENT’S FORM 10-K FILING

Avient Stock Performance

The following is a graph that compares the cumulative total shareholder returns for Avient’s common shares, the S&P 500 index and the
S&P Mid Cap Chemicals index, with dividends assumed to be reinvested when received. The graph assumes the investing of $100 from
December 31, 2016 through December 31, 2021. The S&P Mid Cap Chemicals index includes a broad range of chemical manufacturers.
Because of the relationship of Avient’s business within the chemical industry, comparison with this broader index is appropriate.

Comparison of Cumulative Total Return to Shareholders

STOCK EXCHANGE LISTING

FINANCIAL INFORMATION

Avient's Common Stock is listed on the New York Stock Exchange, Symbol: AVNT

Security analysts and representatives of financial institutions are invited to contact:

SHAREHOLDER INQUIRIES

If you have any questions concerning your account as a shareholder, name or address
changes, inquiries regarding stock certificates, or if you need tax information regarding your
account, please contact our transfer agent:

Joe Di Salvo
Vice President, Treasurer and Investor Relations
Phone: 440-930-1921
Email: giuseppe.disalvo@avient.com

Equiniti Trust Company
1110 Centre Pointe Curve, Suite 101
Mendota Heights, MN 55120-4100
Phone: 1-855-598-2615
or 1-651-450-4064
www.shareowneronline.com

AUDITORS

Ernst & Young LLP
950 Main Ave., Suite 1800
Cleveland, OH 44113

INTERNET ACCESS

Additional information about Avient, including current and historic copies of Annual
Reports on Form 10-K and other reports filed with the Securities and Exchange
Commission, is available online at www.avient.com or free of charge from:

Information on Avient’s products and services, news releases, corporate governance,
EDGAR filings, Reports on Forms 10-K and 10-Q, etc. as well as an electronic version of
this annual report, are available on the Internet at www.avient.com.

Investor Relations
Avient Corporation
33587 Walker Road
Avon Lake, Ohio 44012
Phone: 440-930-1000

ANNUAL MEETING

The annual meeting of shareholders of Avient will be held virtually on May 12, 2022 at
9:00 a.m. The meeting notice and proxy materials were mailed to shareholders with
this annual report. Avient urges all shareholders to vote their proxies so that they can
participate in the decisions at the annual meeting.

THIS PAGE IS NOT PART OF AVIENT’S FORM 10-K FILING

THIS PAGE IS NOT PART OF POLYONE’S FORM 10-K FILING
THIS PAGE IS NOT PART OF POLYONE’S FORM 10-K FILING

Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Dollars in millions, except for per share data)

Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders
and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special
items as defined in our quarterly earnings releases, to assess performance and facilitate comparability of results.

Avient acquired the Clariant Color business on July 1, 2020 (the “Acquisition Date”). To provide comparable financial results, the
Company references “pro forma” financial metrics, which include the business results of Clariant Color for periods prior to the
Acquisition Date. Management believes this provides comparability of the performance of the combined businesses.

Senior management believes the measures described above are useful to investors because they allow for comparison to
Avient's performance in prior periods without the effect of items that, by their nature, tend to obscure Avient's operating results
due to the potential variability across periods based on timing, frequency and magnitude. The presentation of these non-GAAP
measures is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information
prepared and presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools and
should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP.
The presentation of these measures may be different from non-GAAP financial measures used by other companies.

A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below.

Reconciliation of Pro Forma Adjusted Earnings per Share:

Year Ended
December 31,

2021

2020

Net income from continuing operations attributable to Avient shareholders

230.8 $

132.0

Special items, after tax

Adjusted net income from continuing operations excluding special items

Clariant Color pro forma adjustments to net income from continuing operations(1)

50.0

280.8

—

24.8

156.8

20.7

Pro forma adjusted net income from continuing operations attributable to Avient shareholders

280.8 $

177.5

Weighted average diluted shares

Pro forma impact to diluted shares from January 2020 equity offering(1)

Pro forma weighted average diluted shares

92.1

—

92.1

90.6

1.5

92.1

Pro forma adjusted EPS - excluding special items pro forma for Clariant Color acquisition

3.05 $

1.93

(1) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition

Reconciliation to EBITDA and Adjusted EBITDA:

Net income from continuing operations – GAAP

Income tax expense

Interest expense

Depreciation and amortization from continuing operations

EBITDA

Special items, before tax

Depreciation and amortization included in special items

Adjusted EBITDA

Net Debt Calculation

Total long-term debt, net

Unamortized discount and debt issuance cost

Short-term and current portion of long term debt

Total debt

Cash

Net debt

Year Ended
December 31, 2021

230.6

74.0

75.3

145.9

525.8

57.1

(1.7)

581.2

December 31, 2021

1,850.3

14.4

8.6

1,873.3

(601.2)

1,272.1

Our Sustainability

Guiding Principle and

Four Cornerstones

To enable our customers’

innovation and sustainability

goals through world-class

products and services.

VISION AND STRATEGY

Our Vision

At Avient, we create specialized and sustainable

material solutions that transform customer challenges

into opportunities, bringing new products to life for a

better world.

Operational

Excellence

Commercial

Excellence

Associates

Specialization

Globalization

Our Strategy

Specialization

to our customers.

Globalization

Differentiates us through unique value-creating offerings

Positions us to serve our customers consistently,

everywhere in the world.

Operational Excellence

Empowers us to respond to the voice of the customer

with relentless continuous improvement.

Commercial Excellence

Governs our activities in the marketplace to deliver

extraordinary value to our customers.

LEADERSHIP

CORPORATE OFFICERS

BOARD OF DIRECTORS

ROBERT M. PATTERSON
Chairman, President and Chief Executive Officer

JAMIE A. BEGGS
Senior Vice President, Chief Financial Officer

GIUSEPPE Di SALVO
Vice President, Treasurer and Investor Relations

CATHY K. DODD
Senior Vice President, President of Distribution

MICHAEL A. GARRATT
Senior Vice President,
President of Color, Additives and Inks, EMEA

JUSTIN M. HESS
Vice President, Corporate Controller

AVERY L. JOHNSON
Vice President, Tax

HOLGER KRONIMUS
Vice President, Europe, General Manager,
Engineered Materials, Europe

LISA K. KUNKLE
Senior Vice President, General Counsel and Secretary

M. JOHN MIDEA, JR.
Senior Vice President, Global Operations and
Process Improvement

WOON KEAT MOH
Senior Vice President,
President of Color, Additives and Inks, Americas and Asia

CHRISTOPHER L. PEDERSON
Senior Vice President,
President of Specialty Engineered Materials

JENNIFER N. PRUGH
Vice President, Marketing

VINOD PURAYATH, Ph.D.
Senior Vice President, Chief Technology Officer

JOEL RATHBUN
Senior Vice President, Mergers and Acquisitions

JOÃO JOSÉ SAN MARTIN NETO
Senior Vice President, Chief Human Resources Officer

BRIAN SCHILF
Vice President, Information Technology

THOMAS TAYLOR
Vice President, Global Sourcing and Logistics

ROBERT M. PATTERSON
Chairman, President and Chief Executive Officer,
Avient Corporation
Committee: 3

RICHARD H. FEARON
Lead Director, Avient Corporation
Retired Vice Chairman and Chief Financial and
Planning Officer, Eaton
Committees: 2, 4*

ROBERT E. ABERNATHY
Retired Chairman and Chief Executive Officer,
Halyard Health, Inc.
Committees: 1, 2

GREGORY J. GOFF
Former Chairman, President and Chief Executive Officer,
Andeavor
Committees: 3*, 4

NEIL GREEN
Executive Vice President and Chief Digital Officer,
Otis Worldwide Corporation
Committees: 1, 4

WILLIAM R. JELLISON
Retired Vice President, Chief Financial Officer,
Stryker Corporation
Committees: 1*, 3

SANDRA B. LIN
Retired President, Chief Executive Officer and Director,
Calisolar Inc. (now Silicor Materials Inc.)
Committees: 1, 4

KIM ANN MINK, Ph.D.
Former Chairman, President and Chief Executive Officer,
Innophos Holdings, Inc.
Committees: 1, 3

ERNEST NICOLAS
Senior Vice President and Chief Supply Chain Officer,
Rockwell Automation, Inc.
Committees: 2, 3

KERRY J. PREETE
Retired Executive Vice President, Chief Strategy Officer,
Monsanto Company
Committees: 2*, 4

PATRICIA D. VERDUIN, Ph.D.
Chief Technology Officer,
Colgate-Palmolive Company
Committees: 3, 4

WILLIAM A. WULFSOHN
Former Chairman and Chief Executive Officer,
Ashland Global Holdings Inc.
Committees: 1, 2

Corporate Officers as of December 31, 2021

* Denotes Chairperson

Committees

1. Audit 2. Compensation 3. Environmental, Health and Safety 4. Governance and Corporate Responsibility

Challenge Accepted.

AVIENT.COM