should one or more of these risks or uncertainties materialize , affect us in ways or to an extent that we currently do not expect or consider to be significant , or should underlying assumptions prove incorrect , our actual results , performance or achievements may vary materially from those described in this annual report as anticipated , believed , estimated , expected , intended , planned or projected . we neither intend nor assume any obligation to update these forward-looking statements , which speak only as of their dates . 36 results of operations financial highlights replace_table_token_4_th _ ( 1 ) defined as operating profit ( loss ) divided by net sales . replace_table_token_5_th 37 factors affecting business segment net sales the percentage increase ( decrease ) in net sales attributable to each of the factors indicated for each of our business segments is as follows : year ended december 31 , 2020 compared to year ended december 31 , 2019 replace_table_token_6_th pension and postretirement benefit plan costs the increase ( decrease ) in pension and other postretirement plan net periodic benefit cost for each of our business segments is as follows : year ended december 31 , 2020 compared to year ended december 31 , 2019 replace_table_token_7_th see note 13 - benefit obligations in the accompanying consolidated financial statements for further information . consolidated results year ended december 31 , 2020 compared to year ended december 31 , 2019 net sales decreased $ 642 million , or 10 % , for the year ended december 31 , 2020 compared to the same period in 2019 primarily due to : lower volume in our engineered materials and acetate tow segments due to ( i ) depressed global economic conditions as a result of the covid-19 pandemic and ( ii ) the expiration of an acetate flake contract ; and lower pricing across all of our segments , primarily driven by our acetyl chain segment due to the reduced global customer demand environment and an overall deflationary environment for raw materials as a result of the covid-19 pandemic ; partially offset by : a favorable currency impact resulting from a stronger euro relative to the us dollar . operating profit decreased $ 170 million , or 20 % , for the year ended december 31 , 2020 compared to the same period in 2019 primarily due to : lower net sales across all of our segments ; and 38 higher plant turnaround and spending in our engineered materials and acetyl chain segments ; partially offset by : lower raw material costs within our acetyl chain and engineered materials segments ; a favorable impact to other ( charges ) gains , net . during the year ended december 31 , 2019 , we recorded a reserve of $ 89 million as a result of the european commission 's investigation of certain past ethylene purchases and an $ 83 million long-lived asset impairment loss related to the closure of our acetate flake manufacturing operations in ocotlán , mexico , which did not recur in the current year . see note 4 - acquisitions , dispositions and plant closures and note 16 - other ( charges ) gains , net in the accompanying consolidated financial statements for further information ; and lower energy costs across all of our segments . equity in net earnings ( loss ) of affiliates decreased $ 48 million for the year ended december 31 , 2020 compared to the same period in 2019 primarily due to : a decrease in equity investment in earnings of $ 31 million and $ 8 million from our ibn sina and korea engineering plastics co. , ltd. ( `` kepco `` ) strategic affiliates , primarily as a result of depressed global economic conditions ; and a decrease in equity investment in earnings of $ 10 million from our polyplastics strategic affiliate as a result of the sale of our 45 % joint venture equity interest to our joint venture partner daicel during the three months ended december 31 , 2020. see note 7 - investments in affiliates in the accompanying consolidated financial statements for further information . non-operating pension and other postretirement employee benefit income increased $ 37 million during the year ended december 31 , 2020 compared to the same period in 2019 primarily due to lower interest cost and higher expected return on plan assets . see note 13 - benefit obligations in the accompanying consolidated financial statements for further information . gain ( loss ) on sale of investments in affiliates of $ 1.4 billion increased for the year ended december 31 , 2020 compared to the same period in 2019 due to the sale of our 45 % polyplastics joint venture equity interest . see note 7 - investments in affiliates in the accompanying consolidated financial statements for further information . our effective income tax rate for the year ended december 31 , 2020 was 11 % compared to 13 % for the year ended 2019. the lower effective income tax rate for the year ended december 31 , 2020 compared to the same period in 2019 was primarily due to the tax impacts of certain divestitures and reorganization transactions , partially offset by tax charges related to the impacts of uncertain tax positions due to available tax attribute carryforwards and increases in the valuation allowance on us foreign tax credit carryforwards due to revised forecasts of foreign sourced income and expenses during the carryforward period . see note 17 - income taxes in the accompanying consolidated financial statements for further information . story_separator_special_tag contractual guarantees and commitments as of december 31 , 2020 , we have standby letters of credit of $ 21 million and bank guarantees of $ 23 million outstanding , which are irrevocable obligations of an issuing bank that ensure payment to third parties in the event that certain subsidiaries fail to perform in accordance with specified contractual obligations . the likelihood is remote that material payments will be required under these agreements . see note 12 - debt in the accompanying consolidated financial statements for a description of the guarantees under our senior notes and credit agreement . see note 21 - commitments and contingencies in the accompanying consolidated financial statements for a discussion of commitments and contingencies related to legal and regulatory proceedings . off-balance sheet arrangements we have not entered into any material off-balance sheet arrangements . market risks see item 7a . quantitative and qualitative disclosure about market risk for further information . 49 critical accounting policies and estimates our consolidated financial statements are based on the selection and application of significant accounting policies . the preparation of consolidated financial statements in conformity with us gaap requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net sales , expenses and allocated charges during the reporting period . actual results could differ from those estimates . however , we are not currently aware of any reasonably likely events or circumstances that would result in materially different results . we believe the following accounting policies and estimates are critical to understanding the financial reporting risks present in the current economic environment . these matters , and the judgments and uncertainties affecting them , are also essential to understanding our reported and future operating results . see note 2 - summary of accounting policies in the accompanying consolidated financial statements for further information . recoverability of long-lived assets recoverability of goodwill and indefinite-lived assets we assess the recoverability of the carrying amount of our goodwill and other indefinite-lived intangible assets annually during the third quarter of our fiscal year using june 30 balances or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable . when assessing the recoverability of goodwill and other indefinite-lived intangible assets , we may first assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit or other indefinite-lived intangible asset is less than its carrying amount . the qualitative evaluation is an assessment of multiple factors , including the current operating environment , financial performance and market considerations . we may elect to bypass the qualitative assessment for some or all of our reporting units or other indefinite-lived intangible assets and proceed directly to a quantitative analysis depending on the facts and circumstances . in performing a quantitative analysis of goodwill , recoverability of goodwill for each reporting unit is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved . the key assumptions used in the discounted cash flow valuation model include discount rates , growth rates , tax rates , cash flow projections and terminal value rates . discount rates , growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment . management tests other indefinite-lived intangible assets quantitatively utilizing the relief from royalty method under the income approach to determine the estimated fair value for each indefinite-lived intangible asset . key assumptions used in this model include discount rates , royalty rates , growth rates , tax rates , sales projections and terminal value rates . discount rates , royalty rates , growth rates , growth rates and sales projections are the assumptions most sensitive and susceptible to change as they require significant management judgment . specific assumptions discussed above are updated at the date of each test to consider current industry and company-specific risk factors from the perspective of a market participant . the current business environment is subject to evolving market conditions and requires significant management judgment to interpret the potential impact to our assumptions . to the extent that changes in the current business environment result in adjusted management projections , impairment losses may occur in future periods . see note 9 - goodwill and intangible assets , net in the accompanying consolidated financial statements for further information . 50 benefit obligations the amounts recognized in the consolidated financial statements related to pension and other postretirement benefits are determined on an actuarial basis . various assumptions are used in the calculation of the actuarial valuation of the employee benefit plans . these assumptions include the discount rate , compensation levels , expected long-term rates of return on plan assets and trends in health care costs . in addition , actuarial consultants use factors such as withdrawal and mortality rates to estimate the projected benefit obligation . the actuarial assumptions used may differ materially from actual results due to changing market and economic conditions , higher or lower withdrawal rates or longer or shorter life spans of participants . these differences may result in a significant impact to the amount of net periodic benefit cost recorded in future periods . pension assumptions are reviewed annually in the fourth quarter of each fiscal year and whenever a plan is required to be remeasured . assumptions are reviewed on a plan and country-specific basis by third-party actuaries and senior management . such assumptions are adjusted as appropriate to reflect changes in market rates and outlook . see note 13 - benefit obligations in the accompanying consolidated financial statements for further information . income taxes we regularly review our deferred tax assets for recoverability and establish a valuation allowance as needed . in forming our judgment regarding the recoverability of deferred

cash flows cash and cash equivalents increased $ 492 million to $ 955 million as of december 31 , 2020 compared to december 31 , 2019. as of december 31 , 2020 , $ 578 million of the $ 955 million of cash and cash equivalents was held by our foreign subsidiaries . under the tcja , we have incurred a prior year charge associated with the deemed repatriation of previously unremitted foreign earnings , including foreign held cash . these funds are largely accessible without additional material tax consequences , if needed in the us , to fund operations . see note 17 - income taxes in the accompanying consolidated financial statements for further information . year ended december 31 , 2020 compared to year ended december 31 , 2019 net cash provided by ( used in ) operating activities net cash provided by operating activities decreased $ 111 million to $ 1.3 billion for the year ended december 31 , 2020 compared to $ 1.5 billion for the same period in 2019. net cash provided by operations for the year ended december 31 , 2020 decreased primarily due to : a decrease in net earnings , net of the sale of our polyplastics joint venture equity interest ; 44 partially offset by : favorable trade working capital of $ 147 million , primarily due to a decrease in inventory and payables . inventory decreased as a result of turnaround activity and reduced operational rates in the current year . payables decreased as a result of timing of settlement of trade payables ; and a decrease in incentive compensation payouts of $ 62 million . net cash provided by ( used in ) investing activities net cash provided by investing activities increased $ 1.1 billion to $ 592 million for the year ended december 31 , 2020 compared to net cash used in investing activities of $ 493 million for the same period in 2019 , primarily due to : a net cash inflow of $ 1.6 billion related to the sale of our 45 % polyplastics joint venture equity interest .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows cash and cash equivalents increased $ 492 million to $ 955 million as of december 31 , 2020 compared to december 31 , 2019. as of december 31 , 2020 , $ 578 million of the $ 955 million of cash and cash equivalents was held by our foreign subsidiaries . under the tcja , we have incurred a prior year charge associated with the deemed repatriation of previously unremitted foreign earnings , including foreign held cash . these funds are largely accessible without additional material tax consequences , if needed in the us , to fund operations . see note 17 - income taxes in the accompanying consolidated financial statements for further information . year ended december 31 , 2020 compared to year ended december 31 , 2019 net cash provided by ( used in ) operating activities net cash provided by operating activities decreased $ 111 million to $ 1.3 billion for the year ended december 31 , 2020 compared to $ 1.5 billion for the same period in 2019. net cash provided by operations for the year ended december 31 , 2020 decreased primarily due to : a decrease in net earnings , net of the sale of our polyplastics joint venture equity interest ; 44 partially offset by : favorable trade working capital of $ 147 million , primarily due to a decrease in inventory and payables . inventory decreased as a result of turnaround activity and reduced operational rates in the current year . payables decreased as a result of timing of settlement of trade payables ; and a decrease in incentive compensation payouts of $ 62 million . net cash provided by ( used in ) investing activities net cash provided by investing activities increased $ 1.1 billion to $ 592 million for the year ended december 31 , 2020 compared to net cash used in investing activities of $ 493 million for the same period in 2019 , primarily due to : a net cash inflow of $ 1.6 billion related to the sale of our 45 % polyplastics joint venture equity interest .
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 Suspicious Activity Report : should one or more of these risks or uncertainties materialize , affect us in ways or to an extent that we currently do not expect or consider to be significant , or should underlying assumptions prove incorrect , our actual results , performance or achievements may vary materially from those described in this annual report as anticipated , believed , estimated , expected , intended , planned or projected . we neither intend nor assume any obligation to update these forward-looking statements , which speak only as of their dates . 36 results of operations financial highlights replace_table_token_4_th _ ( 1 ) defined as operating profit ( loss ) divided by net sales . replace_table_token_5_th 37 factors affecting business segment net sales the percentage increase ( decrease ) in net sales attributable to each of the factors indicated for each of our business segments is as follows : year ended december 31 , 2020 compared to year ended december 31 , 2019 replace_table_token_6_th pension and postretirement benefit plan costs the increase ( decrease ) in pension and other postretirement plan net periodic benefit cost for each of our business segments is as follows : year ended december 31 , 2020 compared to year ended december 31 , 2019 replace_table_token_7_th see note 13 - benefit obligations in the accompanying consolidated financial statements for further information . consolidated results year ended december 31 , 2020 compared to year ended december 31 , 2019 net sales decreased $ 642 million , or 10 % , for the year ended december 31 , 2020 compared to the same period in 2019 primarily due to : lower volume in our engineered materials and acetate tow segments due to ( i ) depressed global economic conditions as a result of the covid-19 pandemic and ( ii ) the expiration of an acetate flake contract ; and lower pricing across all of our segments , primarily driven by our acetyl chain segment due to the reduced global customer demand environment and an overall deflationary environment for raw materials as a result of the covid-19 pandemic ; partially offset by : a favorable currency impact resulting from a stronger euro relative to the us dollar . operating profit decreased $ 170 million , or 20 % , for the year ended december 31 , 2020 compared to the same period in 2019 primarily due to : lower net sales across all of our segments ; and 38 higher plant turnaround and spending in our engineered materials and acetyl chain segments ; partially offset by : lower raw material costs within our acetyl chain and engineered materials segments ; a favorable impact to other ( charges ) gains , net . during the year ended december 31 , 2019 , we recorded a reserve of $ 89 million as a result of the european commission 's investigation of certain past ethylene purchases and an $ 83 million long-lived asset impairment loss related to the closure of our acetate flake manufacturing operations in ocotlán , mexico , which did not recur in the current year . see note 4 - acquisitions , dispositions and plant closures and note 16 - other ( charges ) gains , net in the accompanying consolidated financial statements for further information ; and lower energy costs across all of our segments . equity in net earnings ( loss ) of affiliates decreased $ 48 million for the year ended december 31 , 2020 compared to the same period in 2019 primarily due to : a decrease in equity investment in earnings of $ 31 million and $ 8 million from our ibn sina and korea engineering plastics co. , ltd. ( `` kepco `` ) strategic affiliates , primarily as a result of depressed global economic conditions ; and a decrease in equity investment in earnings of $ 10 million from our polyplastics strategic affiliate as a result of the sale of our 45 % joint venture equity interest to our joint venture partner daicel during the three months ended december 31 , 2020. see note 7 - investments in affiliates in the accompanying consolidated financial statements for further information . non-operating pension and other postretirement employee benefit income increased $ 37 million during the year ended december 31 , 2020 compared to the same period in 2019 primarily due to lower interest cost and higher expected return on plan assets . see note 13 - benefit obligations in the accompanying consolidated financial statements for further information . gain ( loss ) on sale of investments in affiliates of $ 1.4 billion increased for the year ended december 31 , 2020 compared to the same period in 2019 due to the sale of our 45 % polyplastics joint venture equity interest . see note 7 - investments in affiliates in the accompanying consolidated financial statements for further information . our effective income tax rate for the year ended december 31 , 2020 was 11 % compared to 13 % for the year ended 2019. the lower effective income tax rate for the year ended december 31 , 2020 compared to the same period in 2019 was primarily due to the tax impacts of certain divestitures and reorganization transactions , partially offset by tax charges related to the impacts of uncertain tax positions due to available tax attribute carryforwards and increases in the valuation allowance on us foreign tax credit carryforwards due to revised forecasts of foreign sourced income and expenses during the carryforward period . see note 17 - income taxes in the accompanying consolidated financial statements for further information . story_separator_special_tag contractual guarantees and commitments as of december 31 , 2020 , we have standby letters of credit of $ 21 million and bank guarantees of $ 23 million outstanding , which are irrevocable obligations of an issuing bank that ensure payment to third parties in the event that certain subsidiaries fail to perform in accordance with specified contractual obligations . the likelihood is remote that material payments will be required under these agreements . see note 12 - debt in the accompanying consolidated financial statements for a description of the guarantees under our senior notes and credit agreement . see note 21 - commitments and contingencies in the accompanying consolidated financial statements for a discussion of commitments and contingencies related to legal and regulatory proceedings . off-balance sheet arrangements we have not entered into any material off-balance sheet arrangements . market risks see item 7a . quantitative and qualitative disclosure about market risk for further information . 49 critical accounting policies and estimates our consolidated financial statements are based on the selection and application of significant accounting policies . the preparation of consolidated financial statements in conformity with us gaap requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net sales , expenses and allocated charges during the reporting period . actual results could differ from those estimates . however , we are not currently aware of any reasonably likely events or circumstances that would result in materially different results . we believe the following accounting policies and estimates are critical to understanding the financial reporting risks present in the current economic environment . these matters , and the judgments and uncertainties affecting them , are also essential to understanding our reported and future operating results . see note 2 - summary of accounting policies in the accompanying consolidated financial statements for further information . recoverability of long-lived assets recoverability of goodwill and indefinite-lived assets we assess the recoverability of the carrying amount of our goodwill and other indefinite-lived intangible assets annually during the third quarter of our fiscal year using june 30 balances or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable . when assessing the recoverability of goodwill and other indefinite-lived intangible assets , we may first assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit or other indefinite-lived intangible asset is less than its carrying amount . the qualitative evaluation is an assessment of multiple factors , including the current operating environment , financial performance and market considerations . we may elect to bypass the qualitative assessment for some or all of our reporting units or other indefinite-lived intangible assets and proceed directly to a quantitative analysis depending on the facts and circumstances . in performing a quantitative analysis of goodwill , recoverability of goodwill for each reporting unit is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved . the key assumptions used in the discounted cash flow valuation model include discount rates , growth rates , tax rates , cash flow projections and terminal value rates . discount rates , growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment . management tests other indefinite-lived intangible assets quantitatively utilizing the relief from royalty method under the income approach to determine the estimated fair value for each indefinite-lived intangible asset . key assumptions used in this model include discount rates , royalty rates , growth rates , tax rates , sales projections and terminal value rates . discount rates , royalty rates , growth rates , growth rates and sales projections are the assumptions most sensitive and susceptible to change as they require significant management judgment . specific assumptions discussed above are updated at the date of each test to consider current industry and company-specific risk factors from the perspective of a market participant . the current business environment is subject to evolving market conditions and requires significant management judgment to interpret the potential impact to our assumptions . to the extent that changes in the current business environment result in adjusted management projections , impairment losses may occur in future periods . see note 9 - goodwill and intangible assets , net in the accompanying consolidated financial statements for further information . 50 benefit obligations the amounts recognized in the consolidated financial statements related to pension and other postretirement benefits are determined on an actuarial basis . various assumptions are used in the calculation of the actuarial valuation of the employee benefit plans . these assumptions include the discount rate , compensation levels , expected long-term rates of return on plan assets and trends in health care costs . in addition , actuarial consultants use factors such as withdrawal and mortality rates to estimate the projected benefit obligation . the actuarial assumptions used may differ materially from actual results due to changing market and economic conditions , higher or lower withdrawal rates or longer or shorter life spans of participants . these differences may result in a significant impact to the amount of net periodic benefit cost recorded in future periods . pension assumptions are reviewed annually in the fourth quarter of each fiscal year and whenever a plan is required to be remeasured . assumptions are reviewed on a plan and country-specific basis by third-party actuaries and senior management . such assumptions are adjusted as appropriate to reflect changes in market rates and outlook . see note 13 - benefit obligations in the accompanying consolidated financial statements for further information . income taxes we regularly review our deferred tax assets for recoverability and establish a valuation allowance as needed . in forming our judgment regarding the recoverability of deferred

