Operating Segment Information

12 Months Ended

Dec. 31, 2019

Note 26. 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:


	Year ended December 31,
	2019		2018		2017
Revenues:
Titanium Dioxide	$	1,614	$	1,666	$	1,604
Performance Additives	516		599		605
Total	$	2,130	$	2,265	$	2,209
Adjusted EBITDA⁽¹⁾:
Titanium Dioxide	$	197	$	417	$	387
Performance Additives	47		62		72
	244		479		459
Corporate and other	(50)		(43)		(64)
Total	$	194	$	436	$	395
Reconciliation of adjusted EBITDA to net (loss) income:
Interest expense	(53)		(53)		(100)
Interest income	12		13		60
Income tax (expense) benefit—continuing operations	(150)		8		(50)
Depreciation and amortization	(110)		(132)		(127)
Net income attributable to noncontrolling interests	5		6		10
Other adjustments:
Business acquisition and integration expenses	1		(20)		(5)
Separation gain (expense), net	3		(2)		(7)
U.S. income tax reform	—		—		34
Net income of discontinued operations, net of tax	—		—		8
(Loss) gain on disposition of business/assets	(1)		(2)		—
Certain legal settlements and related expenses	(4)		—		(1)
Amortization of pension and postretirement actuarial losses	(14)		(15)		(17)
Net plant incident (costs) credits	(20)		232		(4)
Restructuring, impairment and plant closing and transition costs	(33)		(628)		(52)
Net (loss) income	$	(170)	$	(157)	$	144
Depreciation and Amortization:
Titanium Dioxide	$	79	$	93	$	85
Performance Additives	27		27		36
Corporate and other	4		12		6
Total	$	110	$	132	$	127


	Year ended December 31,
	2019		2018		2017
Capital Expenditures:
Titanium Dioxide	$	133	$	301	$	178
Performance Additives	18		24		17
Corporate and other	1		1		2
Total	$	152	$	326	$	197
Total Assets:
Titanium Dioxide	$	1,670	$	1,631
Performance Additives	540		592
Corporate and other	55		262
Total	$	2,265	$	2,485

(1)Adjusted EBITDA is defined as net (loss) income before interest expense, interest income, income tax expense/benefit,, depreciation and amortization and net income attributable to noncontrolling interests, as well as eliminating the following adjustments: (a) business acquisition and integration expenses/adjustments; (b) separation expense/gain, net; (c) U.S. income tax reform; (d) net income of discontinued operation, net of tax; (e) loss/gain on disposition of business/assets; (f) certain legal settlements and related expenses/gains; (g) amortization of pension and postretirement actuarial losses/gains; (h) net plant incident costs/credits; and (i) restructuring, impairment, and plant closing and transition costs/credits.


	Year ended December 31,
By Geographic Area	2019		2018		2017
Revenues⁽¹⁾:
United States	$	500	$	518	$	526
Germany	234		257		230
China	126		131		112
Italy	111		126		126
United Kingdom	110		116		114
Spain	92		96		86
France	78		89		94
India	62		65		63

Other nations	817		867		858
Total	$	2,130	$	2,265	$	2,209
Long Lived Assets:
Germany	$	279	$	263
United Kingdom	189		180
Italy	163		164
United States	104		111
Finland	46		69
Other nations	208		207
Total	$	989	$	994

(1)Geographic information for revenues is based upon countries into which product is sold.