Segment Information

12 Months Ended

Dec. 31, 2019

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:


•	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. 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, 2019
Net sales	2,386		636		⁽¹⁾	3,392		⁽²⁾	—		(117	)	6,297
Other (charges) gains, net (Note 18)	5		(88	)		(3	)		(117	)	—		(203	)
Operating profit (loss)	446		52			678			(342	)	—		834
Equity in net earnings (loss) of affiliates	168		—			4			10		—		182
Depreciation and amortization	131		45			161			15		—		352
Capital expenditures	104		43			208			35		—		390		⁽³⁾
	As of December 31, 2019
Goodwill and intangible assets, net	999		153			234			—		—		1,386
Total assets	4,125		977			3,489			885		—		9,476
	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
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⁾

______________________________


⁽¹⁾	Includes intersegment sales of $0 million, $0 million, $2 million for the years ended December 31, 2019, 2018 and 2017, respectively.


⁽²⁾	Includes intersegment sales of $117 million, $129 million and $110 million for the years ended December 31, 2019, 2018 and 2017, respectively.


⁽³⁾	Includes an increase in accrued capital expenditures of $20 million, a decrease in accrued capital expenditures of $4 million and an increase in accrued capital expenditures of $14 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Geographical Area Information

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



	Year Ended December 31,
	2019	2018	2017
	(In $ millions)
Belgium	259	261	295
Canada	75	115	92
China	859	1,070	833
Germany	2,132	2,335	1,776
Mexico	244	307	257
Singapore	787	997	867
US	1,713	1,769	1,572
Other	228	301	448
Total	6,297	7,155	6,140

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



	As of December 31,
	2019	2018
	(In $ millions)
Belgium	55	54
Canada	105	114
China	316	331
Germany	866	903
Mexico	57	144
Singapore	80	83
US	2,095	1,961
Other	139	129
Total	3,713	3,719