Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

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:

•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, ethylene vinyl acetate ("EVA") polymers and redispersible powders ("RDP") 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. The Company's RDP business is a leading producer of products that have applications in a number of building and construction applications including flooring, plasters, insulation, tiling and waterproofing.

•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, 2021
Net sales	2,718	514	5,430	(1)	—	(125)	8,537
Other (charges) gains, net (Note 15)	6	—	1		(4)	—	3
Operating profit (loss)	411	56	1,819		(340)	—	1,946
Equity in net earnings (loss) of affiliates	126	—	7		13	—	146
Depreciation and amortization	144	39	171		17	—	371
Capital expenditures	154	42	269		25	—	490	(2)
	As of December 31, 2021
Goodwill and intangible assets, net	1,714	154	279		—	—	2,147
Total assets	5,363	1,098	4,428		1,086	—	11,975
	Year Ended December 31, 2020
Net sales	2,081	519	3,147	(1)	—	(92)	5,655
Other (charges) gains, net (Note 15)	(36)	(1)	7		(9)	—	(39)
Operating profit (loss)	235	118	563		(252)	—	664
Equity in net earnings (loss) of affiliates	115	—	5		14	—	134
Gain (loss) on sale of investments in affiliates (Note 7)	1,408	—	—		—	—	1,408
Depreciation and amortization	134	36	163		17	—	350
Capital expenditures	106	37	171		34	—	348	(2)
	As of December 31, 2020
Goodwill and intangible assets, net	1,030	154	301		—	—	1,485
Total assets	3,990	975	3,930		2,014	—	10,909
	Year Ended December 31, 2019
Net sales	2,386	636	3,392	(1)	—	(117)	6,297
Other (charges) gains, net (Note 15)	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	(2)

______________________________

(1)Includes intersegment sales of $125 million, $92 million and $117 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(2)Includes an increase in accrued capital expenditures of $23 million, a decrease in accrued capital expenditures of $16 million and an increase in accrued capital expenditures of $20 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Geographical Area Information

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

	Year Ended December 31,
	2021	2020	2019
	(In $ millions)
Belgium	268	274	259
Canada	98	68	75
China	1,621	888	859
Germany	2,675	1,837	2,132
Mexico	330	200	244
Singapore	1,202	627	787
Switzerland	140	81	—
U.S.	2,004	1,490	1,713
Other	199	190	228
Total	8,537	5,655	6,297

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

	As of December 31,
	2021	2020
	(In $ millions)
Belgium	65	60
Canada	96	99
China	413	406
Germany	812	914
Mexico	58	57
Singapore	72	76
U.S.	2,377	2,155
Other	300	172
Total	4,193	3,939