Segment Information

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Information

Segment Information

Business Segments

The Company operates through the following business segments according to the nature and economic characteristics of our products as well as the manner in which the information is used internally by the Company's key decision maker, who is the Company's Chief Executive Officer.

• Advanced Engineered Materials

The Company’s Advanced Engineered Materials segment develops, produces and supplies a broad portfolio of high performance specialty polymers for application in automotive, medical and electronics products, as well as other consumer and industrial applications. The Company and its strategic affiliates are a leading participant in the global specialty polymers industry. The primary products of Advanced Engineered Materials are used in a broad range of products including automotive components, medical devices, electronics, appliances, industrial applications, battery separators, conveyor belts, filtration equipment, coatings, electrical and electronics.

• Consumer Specialties

The Company’s Consumer Specialties segment consists of the Acetate Products and Nutrinova businesses. The Acetate Products business primarily produces and supplies acetate tow, which is used in the production of filter products. The Company also produces acetate flake which is processed into acetate fiber in the form of a tow band. The Company’s Nutrinova business produces and sells Sunett^®, a high intensity sweetener, and food protection ingredients, such as sorbates, for the food, beverage and pharmaceuticals industries.

• Industrial Specialties

The Company’s Industrial Specialties segment includes the Emulsions and EVA Performance Polymers businesses. The Company’s Emulsions business is a global leader which produces a broad product portfolio, specializing in vinyl acetate ethylene emulsions, and is a recognized authority on low VOC (volatile organic compounds), an environmentally-friendly technology. The Company’s emulsions products are used in a wide array of applications including paints and coatings, adhesives, building and construction, glass fiber, textiles and paper. The EVA Performance Polymers business offers a complete line of low-density polyethylene and specialty ethylene vinyl acetate resins and compounds. EVA Performance Polymers’ products are used in many applications including flexible packaging films, lamination film products, hot melt adhesives, medical tubing and devices, automotive carpet and solar cell encapsulation films.

In July 2009, the Company completed the sale of its PVOH business to Sekisui (Note 4).

• Acetyl Intermediates

The Company’s Acetyl Intermediates segment produces and supplies acetyl products, including acetic acid, VAM, acetic anhydride and acetate esters. These products are generally used as starting materials for colorants, paints, adhesives, coatings, medicines and more. Other chemicals produced in this business segment are organic solvents and intermediates for pharmaceutical, agricultural and chemical products.

In November 2010, the Company announced its newly developed advanced technology to produce ethanol. This innovative, new process combines our proprietary and leading acetyl platform with highly advanced manufacturing technology to produce ethanol from hydrocarbon-sourced feedstocks.

• Other Activities

Other Activities primarily consists of corporate center costs, including financing and administrative activities such as legal, accounting and treasury functions and interest income or expense associated with financing activities of the Company and the Captives.

The business segment management reporting and controlling systems are based on the same accounting policies as those described in the summary of significant accounting policies in Note 2. The Company evaluates performance based on operating profit, net earnings (loss), cash flows and other measures of financial performance reported in accordance with US GAAP.

Sales and revenues related to transactions between business segments are generally recorded at values that approximate third-party selling prices.

	Advanced Engineered Materials			Consumer Specialties			Industrial Specialties		Acetyl Intermediates			Other Activities			Eliminations		Consolidated
	(In $ millions)
	Year Ended December 31, 2011
Net sales	1,298			1,161		(1)	1,223		3,551		(1)	1			(471	)	6,763
Other (charges) gains, net	(49	)		(3	)		—		14			(10	)		—		(48	)
Equity in net earnings (loss) of affiliates	161			2			—		5			24			—		192
Earnings (loss) from continuing operations before tax	239			307			102		469			(362	)		—		755
Depreciation and amortization	100			44			45		96			13			—		298
Capital expenditures	64			92			71		122			15			—		364		(2)
	As of December 31, 2011
Goodwill and intangibles, net	391			277			54		235			—			—		957
Total assets	2,787			1,154			901		2,035			1,641			—		8,518
	Year Ended December 31, 2010
Net sales	1,109			1,098		(1)	1,036		3,082		(1)	2			(409	)	5,918
Other (charges) gains, net	31			(76	)		25	(3)	(12	)		(14	)	(3)	—		(46	)
Equity in net earnings (loss) of affiliates	144			2			—		5			17			—		168
Earnings (loss) from continuing operations before tax	329			237			89		252			(369	)		—		538
Depreciation and amortization	76		(4)	42			41		117		(4)	11			—		287
Capital expenditures	52			50			55		49			16			—		222		(2)
	As of December 31, 2010
Goodwill and intangibles, net	423			284			55		264			—			—		1,026
Total assets	2,765			998			841		1,909			1,768			—		8,281
	Year Ended December 31, 2009
Net sales	808			1,084		(1)	974		2,603		(1)	2			(389	)	5,082
Other (charges) gains, net	(18	)		(9	)		4	(3)	(91	)		(22	)	(3)	—		(136	)
Equity in net earnings (loss) of affiliates	78			1			—		5			15			—		99
Earnings (loss) from continuing operations before tax	114			288			89		102			(342	)		—		251
Depreciation and amortization	73			50			51		123			11			—		308
Capital expenditures	27			50			45		36			9			—		167		(2)

___________________________

⁽¹⁾  Net sales for Acetyl Intermediates and Consumer Specialties include inter-segment sales of $468 million and $3 million, respectively, for the year ended December 31, 2011 and $400 million and $9 million, respectively, for the year ended December 31, 2010; and $383 million and $6 million, respectively, for the year ended December 31, 2009.

⁽²⁾  Excludes expenditures related to the relocation of the Company’s Ticona plant in Kelsterbach (Note 27) and includes an increase in accrued capital expenditures of $15 million and $21 million for the years ended December 31, 2011 and December 31, 2010, respectively, and a decrease in accrued capital expenditures of $9 million for the year ended December 31, 2009.

⁽³⁾  Includes $7 million and $10 million for the years ended December 31, 2010 and 2009, respectively, of insurance recoveries received from the Company’s captive insurance companies related to the Edmonton, Alberta, Canada facility that eliminates in consolidation.

⁽⁴⁾  Includes $2 million for Advanced Engineered Materials and $20 million for Acetyl Intermediates for the accelerated amortization of the unamortized prepayment related to a raw material purchase agreement (Note 23).

Geographical Segments

Revenues and noncurrent assets are presented based on the location of the business. The net sales based on the geographic location of the Company’s facilities are as follows:

	Year Ended December 31,
	2011	2010	2009
	(In $ millions)
Net sales
US	1,772	1,555	1,262
International	4,991	4,363	3,820
Total	6,763	5,918	5,082
International countries with significant net sales
Germany	2,328	1,950	1,733
China	667	596	460
Singapore	722	612	513
Belgium	461	451	459
Canada	323	277	173
Mexico	241	267	277

Property, plant and equipment, net based on the geographic location of the Company’s facilities is as follows:

	As of December 31,
	2011	2010
	(In $ millions)
Property, plant and equipment, net
US	735	650
International	2,534	2,367
Total	3,269	3,017
International countries with significant property, plant and equipment, net
Germany	1,394	1,321
China	573	557
Singapore	112	90
Belgium	53	30
Canada	154	131
Mexico	117	109