Segment Information

Business Segments

Effective January 1, 2018, the Company reorganized its operating and reportable segments to align with recent structural and management reporting changes. The changes reflect the movement of its food ingredients business from the Consumer Specialties reportable segment into the Engineered Materials reportable segment. In addition, the former Consumer Specialties reportable segment was renamed the Acetate Tow segment, and the former Advanced Engineered Materials reportable segment was renamed the Engineered Materials segment. This reorganization better reflects how the Company manages its food ingredients' related products commercially. Engineered Materials and food ingredients are both project-based models that focus on delivering customized solutions and are led by the same senior management team.

Effective December 31, 2018, the Company further reorganized its operating and reportable segments to align with recent structural and management reporting changes. The change reflects the resegmentation of the former Industrial Specialties and former Acetyl Intermediates operating and reportable segments, to the Acetyl Chain operating and reportable segment. This reorganization reflects the culmination of a shift in operating strategy and organizational hierarchy, with a focus on integration, collaboration and maximization of value creation through its global optionality and integrated chain model of the underlying businesses along the Acetyl Chain segment.

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:


•	Engineered Materials

The Company's Engineered Materials segment includes the engineered materials business, our food ingredients 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 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. It is also 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.


•	Acetate Tow

The Company's Acetate Tow segment serves consumer-driven applications and is a leading global producer and supplier of acetate tow and acetate flake, primarily used in filter products applications.


•	Acetyl Chain

The Company's Acetyl Chain segment includes the integrated chain of intermediate chemistry, emulsion polymers and ethylene vinyl acetate ("EVA") polymers businesses, 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 intermediate chemistry business 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. It also produces organic solvents and intermediates for pharmaceutical, agricultural and chemical products. 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 EVA 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.


•	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.



	Engineered Materials		Acetate Tow			Acetyl Chain			Other Activities		Eliminations		Consolidated
	(In $ millions)
	Year Ended December 31, 2018
Net sales	2,593		649		⁽¹⁾	4,042		⁽²⁾	—		(129	)	7,155
Other (charges) gains, net (Note 18)	—		(2	)		11			—		—		9
Operating profit (loss)	460		130			1,024			(280	)	—		1,334
Equity in net earnings (loss) of affiliates	218		—			6			9		—		233
Depreciation and amortization	126		58			148			11		—		343
Capital expenditures	105		29			182			17		—		333		⁽³⁾
	As of December 31, 2018
Goodwill and intangible assets, net	974		153			240			—		—		1,367
Total assets	4,012		1,032			3,471			798		—		9,313
	Year Ended December 31, 2017 - As Adjusted (Note 3)
Net sales	2,213		668		⁽¹⁾	3,371		⁽²⁾	—		(112	)	6,140
Other (charges) gains, net (Note 18)	(2	)	(2	)		(52	)		(3	)	—		(59	)
Operating profit (loss)	412		189			509			(253	)	—		857
Equity in net earnings (loss) of affiliates	171		—			6			6		—		183
Depreciation and amortization	111		41			143			10		—		305
Capital expenditures	78		39			150			14		—		281		⁽³⁾
	As of December 31, 2017
Goodwill and intangible assets, net	902		154			248			—		—		1,304
Total assets	3,866		1,163			3,518			991		—		9,538
	Year Ended December 31, 2016 - As Adjusted (Note 3)
Net sales	1,552		821		⁽¹⁾	3,132		⁽²⁾	—		(116	)	5,389
Other (charges) gains, net (Note 18)	(2	)	(1	)		(5	)		—		—		(8	)
Operating profit (loss)	377		276			443			(163	)	1		934
Equity in net earnings (loss) of affiliates	125		—			6			24		—		155
Depreciation and amortization	95		42			141			12		—		290
Capital expenditures	75		36			124			12		—		247		⁽³⁾

______________________________


⁽¹⁾	Includes intersegment sales of $0 million, $2 million, and $0 million for the years ended December 31, 2018, 2017 and 2016, respectively.


⁽²⁾	Includes intersegment sales of $129 million, $110 million and $116 million for the years ended December 31, 2018, 2017 and 2016, respectively.


⁽³⁾	Includes a decrease in accrued capital expenditures of $4 million for the year ended December 31, 2018 and an increase in accrued capital expenditures of $14 million and $1 million for the years ended December 31, 2017 and 2016, respectively.

Geographical Area Information

The net sales to external customers based on geographic location are as follows:



	Year Ended December 31,
	2018	2017	2016
	(In $ millions)
Belgium	261	295	408
Canada	115	92	123
China	1,070	833	745
Germany	2,335	1,776	1,540
Mexico	307	257	214
Singapore	997	867	758
US	1,769	1,572	1,451
Other	301	448	150
Total	7,155	6,140	5,389

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



	As of December 31,
	2018	2017
	(In $ millions)
Belgium	54	57
Canada	114	128
China	331	363
Germany	903	979
Mexico	144	162
Singapore	83	87
US	1,961	1,857
Other	129	129
Total	3,719	3,762