NOTE 14. OPERATING SEGMENT INFORMATION

We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of commodity chemical products. We have reported our operations through our two segments, Titanium Dioxide and Performance Additives, and organized our business and derived our operating segments around differences in product lines. We have historically conducted other business within components of legal entities we operated in conjunction with Huntsman businesses, and such businesses are included within the corporate and other line item below.

The major product groups of each reportable operating segment are as follows:


Segment		Product Group
Titanium Dioxide		titanium dioxide
Performance Additives		functional additives, color pigments, timber treatment and water treatment chemicals

Sales between segments are generally recognized at external market prices and are eliminated in consolidation. Adjusted EBITDA is presented as a measure of the financial performance of our global business units and for reporting the results of our operating segments. The revenues and adjusted EBITDA for each of the two reportable operating segments are as follows:


	Three months ended				Nine months ended
	September 30,				September 30,
(Dollars in millions)	2017		2016		2017		2016
Revenues:
Titanium Dioxide	$	431	$	392	$	1,217	$	1,197
Performance Additives		151		140		464		451
Total	$	582	$	532	$	1,681	$	1,648
Segment adjusted EBITDA(1)
Titanium Dioxide	$	127	$	22	$	268	$	28
Performance Additives		15		16		57		56
		142		38		325		84
Corporate and other		(8)		(17)		(48)		(46)
Total	$	134	$	21	$	277	$	38
Reconciliation of adjusted EBITDA to net income (loss):
Interest expense		(30)		(14)		(54)		(44)
Interest income		22		2		25		13
Income tax (expense) benefit - continuing operations		(14)		7		(26)		14
Depreciation and amortization		(35)		(30)		(95)		(84)
Net income attributable to noncontrolling interests		2		3		8		8
Other adjustments:
Business acquisition and integration expenses		(4)		(3)		(2)		(11)
Gain on disposition of businesses/assets		—		23		—		23
Net income of discontinued operations, net of tax		—		2		8		8
Certain legal settlements and related expenses		—		—		(1)		(1)
Amortization of pension and postretirement actuarial losses		(5)		(3)		(13)		(8)
Net plant incident (costs) credits		(1)		(3)		(4)		2
Restructuring, impairment and plant closing costs		(16)		(7)		(49)		(31)
Net income (loss)	$	53	$	(2)	$	74	$	(73)

(1)

Adjusted EBITDA is defined as net income (loss) of Venator before interest, income tax from continuing operations, depreciation and amortization and net income attributable to noncontrolling interests, as well as eliminating the following adjustments from net income (loss): (a) business acquisition and integration expenses; (b) gain on disposition of businesses/assets (c) net income of discontinued operations, net of income tax; (d) certain legal settlements and related expenses; (e) amortization of pension and postretirement actuarial losses; (f) net plant incident credits (costs); and (g) restructuring, impairment and plant closing costs.