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Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION
The company consists of 10 businesses which are aggregated into 6 reportable segments based on similar economic characteristics, the nature of the products and production processes, end-use markets, channels of distribution and regulatory environment. The company's reportable segments are Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition & Health, Performance Materials and Safety & Protection. The company includes certain businesses not included in the reportable segments, such as pre-commercial programs, nonaligned businesses and pharmaceuticals in Other. Pre-commercial programs include approximately $400 for the investment in a cellulosic biofuel facility in Nevada, Iowa which includes all material, engineering, and technical design costs involved in construction of the facility.  The facility is expected to commence production in the second half of 2016.

Major products by segment include: Agriculture (corn hybrids and soybean varieties, herbicides, fungicides and insecticides); Electronics & Communications (photopolymers and electronic materials); Industrial Biosciences (enzymes and bio-based materials); Nutrition & Health (cultures, emulsifiers, texturants, natural sweeteners and soy-based food ingredients); Performance Materials (engineering polymers, packaging and industrial polymers, films and elastomers); and Safety & Protection (nonwovens, aramids and solid surfaces). The company operates globally in substantially all of its product lines.

In general, the accounting policies of the segments are the same as those described in Note 1. Exceptions are noted as follows and are shown in the reconciliations below. Segment net assets includes net working capital, net property, plant and equipment, and other noncurrent operating assets and liabilities of the segment. Depreciation and amortization includes depreciation on research and development facilities and amortization of other intangible assets, excluding write-down of assets. Effective July 1, 2015, certain corporate expenses will now be included in segment operating earnings. Reclassifications of prior year data have been made to conform to current year classifications.

Segment operating earnings is defined as income (loss) from continuing operations before income taxes excluding significant pre-tax benefits (charges), non-operating pension and other postretirement employee benefit costs, exchange gains (losses), corporate expenses and interest. Non-operating pension and other postretirement employee benefit costs includes all of the components of net periodic benefit cost from continuing operations with the exception of the service cost component.


 
Agriculture
Electronics &
Communications
Industrial Biosciences
Nutrition & Health
Performance
Materials
 
Safety &
Protection
Other
Total
2015
 
 
 
 
 
 
 
 
 
Net sales
$
9,798

$
2,070

$
1,171

$
3,256

5,305

 
$
3,527

$
3

$
25,130

Operating earnings
1,646

359

203

373

1,216

 
704

(258
)
4,243

Depreciation and
    amortization
453

100

84

236

125

 
175

4

1,177

Equity in earnings of
    affiliates
31

24

7

—

(8
)
 
23

(30
)
47

Segment net assets
6,751

1,323

2,443

5,457

2,918

 
3,045

219

22,156

Affiliate net assets
234

139

41

9

171

 
73

21

688

Purchases of property,
    plant and equipment
334

45

77

120

159

 
105

130

970

2014
 

 





 

 
 

 

 
Net sales
$
11,296

$
2,381

$
1,244

$
3,529

$
6,059

 
$
3,892

$
5

$
28,406

Operating earnings
2,352

336

192

369

1,267

 
772

(256
)
5,032

Depreciation and
    amortization
436

97

85

264

139

 
187

6

1,214

Equity in earnings of
    affiliates
31

20

8

—

(77
)
 
27

(46
)
(37
)
Segment net assets
6,696

1,359

2,529

5,942

3,125

 
3,100

267

23,018

Affiliate net assets
240

137

45

7

238

 
80

14

761

Purchases of property,
    plant and equipment
407

52

90

112

134

 
105

200

1,100

2013
 
 
 
 
 
 
 
 
 
Net sales
$
11,728

$
2,534

$
1,211

$
3,473

$
6,166

 
$
3,880

$
6

$
28,998

Operating earnings
2,480

314

151

286

1,249

 
664

(238
)
4,906

Depreciation and
    amortization
358

105

81

271

162

 
198

6

1,181

Equity in earnings of
    affiliates
37

20

2

—

(9
)
 
21

(48
)
23

Segment net assets
5,919

1,448

2,640

6,472

3,334

1 

3,196

75

23,084

Affiliate net assets
272

141

48

7

318

 
83

19

888

Purchases of property,
    plant and equipment
485

73

77

138

179

 
109

114

1,175



1. 
Includes assets held for sale related to GLS/Vinyls of $228 as of December 31, 2013. See Note 3 for additional information.

Reconciliation to Consolidated Financial Statements
Segment operating earnings to income from continuing operations before income taxes
2015
2014
2013
Total segment operating earnings
$
4,243

$
5,032

$
4,906

Significant pre-tax (charges) benefits not included in segment operating earnings
(38
)
434

(486
)
Non-operating pension and other postretirement employee benefit costs
(374
)
(128
)
(533
)
Net exchange gains (losses), including affiliates
30

196

(101
)
Corporate expenses
(928
)
(844
)
(772
)
Interest expense
(342
)
(377
)
(448
)
Income from continuing operations before income taxes
$
2,591

$
4,313

$
2,566


 
Segment net assets to total assets at December 31,
2015
2014
2013
Total segment net assets
$
22,156

$
23,018

$
23,084

Corporate assets1
11,163

12,889

13,884

Liabilities included in segment net assets
7,847

8,356

9,462

Assets related to discontinued operations2
—

6,227

5,712

Total assets
$
41,166

$
50,490

$
52,142


1. 
Pension assets are included in corporate assets.
2. 
See Note 1 for additional information on the presentation of Performance Chemicals which met the criteria for discontinued operations.

Other items
Segment
Totals
Adjustments1
Consolidated
Totals
2015
 

 

 

Depreciation and amortization
$
1,177

$
289

$
1,466

Equity in earnings of affiliates
47

2

49

Affiliate net assets
688

—

688

Purchases of property, plant and equipment
970

659

1,629

2014
 

 

 

Depreciation and amortization
$
1,214

$
403

$
1,617

Equity in loss of affiliates
(37
)
1

(36
)
Affiliate net assets
761

1

762

Purchases of property, plant and equipment
1,100

920

2,020

2013
 

 

 

Depreciation and amortization
$
1,181

$
422

$
1,603

Equity in earnings of affiliates
23

(1
)
22

Affiliate net assets
888

3

891

Purchases of property, plant and equipment
1,175

707

1,882



1. 
Adjustments include amounts related to the Performance Chemicals and Performance Coatings businesses which met the criteria for discontinued operations during 2015 and 2012, respectively. See Note 1 for additional information on the presentation of discontinued operations and See Note 3 for depreciation, amortization and purchases of property, plant and equipment related to Performance Chemicals for 2015, 2014 and 2013.

Additional Segment Details
2015 included the following significant pre-tax benefits (charges) which are excluded from segment operating earnings:
Agriculture1,2,5
$
148

Electronics & Communications1,5
(78
)
Industrial Biosciences1,5
(52
)
Nutrition & Health1,5
(50
)
Performance Materials1,5
(62
)
Safety & Protection1,3,5
96

Other1,4,5
(40
)
    
$
(38
)


1. 
Included a $10 net restructuring benefit recorded in employee separation/asset related charges, net, associated with the 2014 restructuring program. These adjustments were primarily due to the identification of additional projects in certain segments, offset by lower than estimated individual severance costs and workforce reductions achieved through non-severance programs. The net reduction related to segments as follows: Agriculture - $(3), Electronics & Communications - $15, Industrial Biosciences - $(1), Nutrition & Health - $(3), Performance Materials - $(1), Safety & Protection $4 and Other - $(1). See Note 4 for additional information.
2. 
Included $182 of net insurance recoveries recorded in other operating charges for recovery of costs for customer claims related to the use of the Imprelis® herbicide. Included a benefit of $130 in other operating charges for reduction in the accrual for customer claims related to the use of the Imprelis® herbicide. At December 31, 2015, the company had an accrual balance of $41 which represents the company’s best estimate associated with resolving the remaining claims for this matter. See Note 16 for additional information.
3. 
Included a gain of $145, net of legal expenses, recorded in other income, net related to the company's settlement of a legal claim.
4. 
Included a $(37) pre-tax impairment charge recorded in employee separation / asset related charges, net for a cost basis investment. See Note 4 for additional information.
5. 
Included a $(468) restructuring charge consisting of $(463) recorded in employee separation/asset related charges, net and $(5) recorded in other income, net associated with structural actions across all businesses and staff functions globally to operate more efficiently by further consolidating businesses and aligning staff functions more closely with the businesses. The charge included $(351) of severance and related benefit costs, $(103) of asset related charges, and $(14) of contract termination costs. Pre-tax charges by segment are: Agriculture - $(161), Electronics & Communications - $(93), Industrial Biosciences - $(51), Nutrition & Health - $(47), Performance Materials - $(61), Safety & Protection - $(53), and Other - $(2).

2014 included the following significant pre-tax benefits (charges) which are excluded from segment operating earnings:
Agriculture1,2,3
$
316

Electronics & Communications1
(84
)
Industrial Biosciences1
(13
)
Nutrition & Health1
(15
)
Performance Materials1,4
292

Safety & Protection1
(52
)
Other1
(10
)
    
$
434




1. 
Included a $(407) restructuring charge associated with the 2014 restructuring program consisting of $(342) recorded in employee separation / asset related charges, net and $(65) recorded in other income, net. The pre-tax charges by segment were: Agriculture - $(134), Electronics & Communications - $(84), Industrial Biosciences - $(13), Nutrition & Health - $(15), Performance Materials - $(99), Safety & Protection - $(52); and Other - $(10). See Note 4 for additional information.
2. 
Included income of $210 for insurance recoveries, recorded in other operating charges associated with the company's process to fairly resolve claims related to the use of Imprelis®. See Note 16 for additional information.
3. 
Included a gain of $240 recorded in other income, net associated with the sale of the copper fungicide and land management businesses, both within the Agriculture segment.
4. 
Included a gain of $391 recorded in other income, net associated with the sale of Glass Laminating Solutions / Vinyls. See Note 3 for additional information.

2013 included the following significant pre-tax benefits (charges) which are excluded from segment operating earnings:
Agriculture1,2
$
(351
)
Electronics & Communications2,3
(131
)
Industrial Biosciences2
1

Nutrition & Health2
6

Performance Materials2
(16
)
Safety & Protection2
4

Other2
1

    
$
(486
)


1. 
Included charges of $(425), offset by $73 of insurance recoveries, recorded in other operating charges associated with the company's process to fairly resolve claims related to the use of Imprelis®. See Note 16 for additional information.
2. 
Included a net $(5) restructuring adjustment consisting of a $14 benefit associated with prior year restructuring programs and a $(19) charge associated with the restructuring actions related to a joint venture. The majority of the $14 net reduction recorded in employee separation / asset related charges, net was due to the achievement of work force reductions through non-severance programs associated with the 2012 restructuring program. The charge of $(19) included $(9) recorded in employee separation / asset related charges, net and $(10) recorded in other income, net and was the result of restructuring actions related to a joint venture within the Performance Materials segment. Pre-tax amounts by segment were: Agriculture - $1; Electronics & Communications - $(2); Industrial Biosciences - $1; Nutrition & Health - $6; Performance Materials - $(16); Safety & Protection - $4; and Other - $1. See Note 4 for additional information.
3. 
Included a $(129) impairment charge recorded in employee separation / asset related charges, net related to an asset grouping within the Electronics & Communications segment. See Note 4 for additional information.