Segment Information

12 Months Ended

Dec. 31, 2022

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.

Effective December 31, 2022, the Company reorganized its operating and reportable segments to align with recent structural and management reporting changes. The change reflects the resegmentation of the former Acetate Tow operating and reportable segment into 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. The historical segment information has been recast to conform with the reorganized segments.

The Company's business segments are as follows:

•Engineered Materials

The Company's Engineered Materials segment includes the engineered materials business, 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.

•Acetyl Chain

The Company's Acetyl Chain segment includes the integrated chain of intermediate chemistry, emulsion polymers, ethylene vinyl acetate ("EVA") polymers, redispersible powders ("RDP"), and acetate tow 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. The Company's acetate tow business serves consumer-driven applications and is a leading global producer and supplier of acetate tow and acetate flake, primarily used in filter products applications.

•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	Acetyl Chain		Other Activities	Eliminations	Consolidated
	(In $ millions)
	Year Ended December 31, 2022
Net sales	4,024	5,743	(1)	—	(94)	9,673
Other (charges) gains, net (Note 24)	(7)	—		(1)	—	(8)
Operating profit (loss)	429	1,447		(498)	—	1,378
Equity in net earnings (loss) of affiliates	202	7		11	—	220
Depreciation and amortization	226	213		23	—	462
Capital expenditures	178	352		53	—	583	(2)
	As of December 31, 2022
Goodwill and intangible assets, net	10,826	421		—	—	11,247
Total assets	20,611	5,471		190	—	26,272
	Year Ended December 31, 2021
Net sales	2,718	5,894	(1)	—	(75)	8,537
Other (charges) gains, net (Note 24)	6	1		(4)	—	3
Operating profit (loss)	411	1,875		(340)	—	1,946
Equity in net earnings (loss) of affiliates	126	7		13	—	146
Depreciation and amortization	144	210		17	—	371
Capital expenditures	154	311		25	—	490	(2)
	As of December 31, 2021
Goodwill and intangible assets, net	1,714	433		—	—	2,147
Total assets	5,363	5,526		1,086	—	11,975
	Year Ended December 31, 2020
Net sales	2,081	3,634	(1)	—	(60)	5,655
Other (charges) gains, net (Note 24)	(36)	6		(9)	—	(39)
Operating profit (loss)	235	681		(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	199		17	—	350
Capital expenditures	106	208		34	—	348	(2)

______________________________

(1)Includes intersegment sales of $94 million, $75 million and $60 million for the years ended December 31, 2022, 2021 and 2020, respectively.

(2)Includes an increase in accrued capital expenditures of $40 million, an increase in accrued capital expenditures of $23 million and a decrease in accrued capital expenditures of $16 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Geographical Area Information

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

	Year Ended December 31,
	2022	2021	2020
	(In $ millions)
Belgium	251	268	274
Canada	120	98	68
China	1,525	1,621	888
Germany	2,934	2,675	1,837
Japan	87	15	10
Mexico	359	330	200
Netherlands	105	—	—
Singapore	1,209	1,202	627
South Korea	68	8	8
Switzerland	165	140	81
U.S.	2,562	2,004	1,490
Other	288	176	172
Total	9,673	8,537	5,655

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

	As of December 31,
	2022	2021
	(In $ millions)
Belgium	113	65
Canada	128	96
China	688	413
Germany	937	812
Japan	52	—
Mexico	52	58
Netherlands	52	43
Singapore	99	72
South Korea	79	4
Switzerland	73	18
U.S.	3,032	2,377
Other	279	235
Total	5,584	4,193