Segment Information

Business Segments

The Company operates through business segments according to the nature and economic characteristics of its products and customer relationships, 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.

The Company's business segments are as follows:


•	Advanced Engineered Materials

The Company's Advanced Engineered Materials segment includes the engineered materials business and certain strategic affiliates. The engineered materials business develops, produces and supplies a broad portfolio of high performance specialty polymers for automotive and medical applications, as well as industrial products and consumer electronics. Together with its strategic affiliates, the Company's engineered materials business is a leading participant in the global specialty polymers industry. The primary products of Advanced Engineered Materials are used in a broad range of end-use products including fuel system components, automotive safety systems, medical applications, electronics, appliances, industrial products, battery separators, conveyor belts, filtration equipment, coatings, and electrical applications and products.


•	Consumer Specialties

The Company's Consumer Specialties segment includes the cellulose derivatives and food ingredients businesses, which serve consumer-driven applications. These operating segments are aggregated by the Company into one reportable segment based on similar economic characteristics and similar production processes, classes of customers and selling and distribution practices. The Company's cellulose derivatives business is a leading global producer and supplier of acetate tow and acetate flake, primarily used in filter products applications. The Company's food ingredients business is a leading global supplier of acesulfame potassium for the food and beverage industry and is a leading producer of food protection ingredients, such as potassium sorbate and sorbic acid. The Company's food ingredients business produces and sells Sunett^® high intensity sweeteners.


•	Industrial Specialties

The Company's Industrial Specialties segment includes the emulsion polymers and EVA polymers businesses, which are operating segments aggregated by the Company into one reportable segment based on similar products, production processes, classes of customers and selling and distribution practices as well as economic similarities over a normal business cycle. The Company's emulsion polymers business is a leading global producer of vinyl acetate-based emulsions and develops products and application technologies to improve performance, create value and drive innovation in applications such as paints and coatings, adhesives, construction, glass fiber, textiles and paper. The Company's EVA polymers business is a leading North American manufacturer of a full range of specialty ethylene vinyl acetate resins and compounds, as well as select grades of low-density polyethylene. The Company's EVA polymers' products are used in many applications, including flexible packaging films, lamination film products, hot melt adhesives, automotive parts and carpeting.


•	Acetyl Intermediates

The Company's Acetyl Intermediates segment includes the intermediate chemistry business, which produces and supplies acetyl products, including acetic acid, vinyl acetate monomer, acetic anhydride and acetate esters. These products are generally used as starting materials for colorants, paints, adhesives, coatings and pharmaceuticals. The Acetyl Intermediates segment also produces organic solvents and intermediates for pharmaceutical, agricultural and chemical products.


•	Other Activities

Other Activities primarily consists of corporate center costs, including administrative activities such as finance, information technology and human resource functions, interest income and expense associated with financing activities and results of the Company's captive insurance companies. Other Activities also includes the components of net periodic benefit cost (interest cost, expected return on assets and net actuarial gains and losses) for the Company's defined benefit pension plans and other postretirement plans not allocated to the Company's business segments.

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 (Note 2).

Sales 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, 2017
Net sales	2,096		785		⁽¹⁾	1,023		⁽²⁾	2,669		⁽³⁾	—		(433	)	6,140
Other (charges) gains, net (Note 18)	(2	)	(2	)		—			(52	)		(4	)	—		(60	)
Operating profit (loss)	383		218			87			424			(211	)	—		901
Equity in net earnings (loss) of affiliates	168		3			—			6			6		—		183
Depreciation and amortization	108		44			38			105			10		—		305
Capital expenditures	75		42			30			120			14		—		281		⁽⁴⁾
	As of December 31, 2017
Goodwill and intangible assets, net	798		258			46			202			—		—		1,304
Total assets	3,672		1,357			861			2,657			991		—		9,538
	Year Ended December 31, 2016
Net sales	1,444		929		⁽¹⁾	979		⁽²⁾	2,441		⁽³⁾	—		(404	)	5,389
Other (charges) gains, net (Note 18)	(2	)	(2	)		(3	)		(3	)		(1	)	—		(11	)
Operating profit (loss)	350		302			105			340			(205	)	1		893
Equity in net earnings (loss) of affiliates	122		3			—			6			24		—		155
Depreciation and amortization	92		45			34			107			12		—		290
Capital expenditures	73		38			57			67			12		—		247		⁽⁴⁾
	As of December 31, 2016
Goodwill and intangible assets, net	517		244			46			183			—		—		990
Total assets	2,792		1,324			758			2,440			1,043		—		8,357
	Year Ended December 31, 2015
Net sales	1,326		969		⁽¹⁾	1,082		⁽²⁾	2,744		⁽³⁾	—		(447	)	5,674
Other (charges) gains, net (Note 18)	(7	)	(25	)		(10	)		(300	)		(9	)	—		(351	)
Operating profit (loss)	235		262			72			(3	)		(240	)	—		326
Equity in net earnings (loss) of affiliates	150		2			—			6			23		—		181
Depreciation and amortization	99		60			64			123			11		—		357
Capital expenditures	73		65			56			282			7		—		483		⁽⁴⁾

______________________________


⁽¹⁾	Includes intersegment sales of $2 million, $0 million and $0 million for the year ended December 31, 2017, 2016 and 2015, respectively.


⁽²⁾	Includes intersegment sales of $4 million, $3 million and $0 million for the years ended December 31, 2017, 2016 and 2015, respectively.


⁽³⁾	Includes intersegment sales of $427 million, $401 million and $447 million for the years ended December 31, 2017, 2016 and 2015, respectively.


⁽⁴⁾	Includes an increase in accrued capital expenditures of $14 million, an increase of $1 million and a decrease of $37 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Geographical Area Information

The net sales based on the geographic location of the Company's facilities are as follows:



	Year Ended December 31,
	2017	2016	2015
	(In $ millions)
Belgium	295	408	417
Canada	92	123	162
China	833	745	800
Germany	1,776	1,540	1,779
Italy	259	13	—
Mexico	257	214	204
Singapore	867	758	703
US	1,572	1,451	1,463
Other	189	137	146
Total	6,140	5,389	5,674

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



	As of December 31,
	2017	2016
	(In $ millions)
Belgium	57	55
Canada	128	132
China	363	359
Germany	979	868
Italy	51	45
Mexico	162	159
Singapore	87	90
US	1,857	1,798
Other	78	71
Total	3,762	3,577