Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of segment reporting of net sales, operating income and total assets


(in millions)	2017		2016		2015
Net sales to unaffiliated customers:
North America	$	3,529	$	3,447	$	3,345
South America		1,007		1,010		1,013
Asia Pacific		740		709		733
EMEA		556		538		530
Total	$	5,832	$	5,704	$	5,621

Operating income:
North America	$	661	$	610	$	479
South America		80		89		101
Asia Pacific		112		111		107
EMEA		113		106		93
Corporate (a)		(82)		(86)		(75)
Subtotal		884		830		705
Restructuring/impairment charges (b)		(38)		(19)		(28)
Acquisition/integration costs		(4)		(3)		(10)
Charge for fair value markup of acquired inventory		(9)		—		(10)
Insurance settlement		9		—		—
Litigation settlement		—		—		(7)
Gain from land sale		—		—		10
Total operating income		842		808		660
Financing costs, net		73		66		61
Income before income taxes	$	769	$	742	$	599

(a)

For 2015, includes $4 million of expense relating to a tax indemnification agreement with offsetting income of $4 million recorded in the provision for income taxes (see Note 9).

(b)

For 2017, includes $17 million of employee-related severance and other costs associated with the restructuring in Argentina, $13 million of restructuring of related to our leaf extraction process in Brazil, $6 million of employee-related severance and other costs associated with the Finance Transformation initiative, and $2 million of other restructuring charges including employee-related severance costs in North America and a refinement of estimates for prior year restructuring activities. For 2016, includes $11 million of employee-related severance and other costs associated with the execution of IT outsourcing contracts, $6 million of employee-related severance costs associated with our optimization initiative in North America and South America, and $2 million of costs attributable to the Port Colborne plant sale. For 2015, includes $12 million of charges for impaired assets and restructuring costs in Brazil, $12 million of restructuring costs associated with the Penford acquisition, and $4 million of restructuring costs in Canada.


	As of December 31,
(in millions)	2017		2016
Total assets:
North America (a)	$	3,967	$	3,796
South America		812		809
Asia Pacific		774		697
EMEA		527		480
Total	$	6,080	$	5,782

(a)

For purposes of presentation, North America includes Corporate assets.


(in millions)	2017		2016		2015
Depreciation and amortization:
North America (a)	$	140	$	130	$	123
South America		27		26		30
Asia Pacific		25		23		23
EMEA		17		17		18
Total	$	209	$	196	$	194
Mechanical stores expense (b):
North America (a)	$	37	$	37	$	36
South America		12		12		13
Asia Pacific		5		5		5
EMEA		3		3		3
Total	$	57	$	57	$	57
Capital expenditures and mechanical stores purchases:
North America (a)	$	180	$	167	$	158
South America		50		56		61
Asia Pacific		51		41		36
EMEA		33		20		25
Total	$	314	$	284	$	280

(a)

For purposes of presentation, North America includes Corporate activities of depreciation, amortization, capital expenditures, and mechanical stores purchase, respectively.

(a)

Represents spare parts used in the production process. Such spare parts are recorded in PP&E as part of machinery and equipment until they are utilized in the manufacturing process and expensed as a period cost.

Schedule of net sales to unaffiliated customers by country of origin


	Net Sales
(in millions)	2017		2016		2015
U.S.	$	2,191	$	2,117	$	1,983
Mexico		952		955		945
Brazil		519		522		452
Canada		385		375		417
Korea		275		266		276
Others		1,510		1,469		1,548
Total	$	5,832	$	5,704	$	5,621

Schedule of long-lived assets (excluding intangible assets) by country


	Long-lived Assets
(in millions)	2017		2016
U.S.	$	977	$	955
Mexico		306		303
Brazil		235		245
Canada		179		147
Thailand		137		119
Germany		133		106
Korea		109		84
Others		284		278
Total	$	2,360	$	2,237