Business Segments (Tables)

12 Months Ended

Dec. 31, 2015

The following table presents segment sales and operating income, and the reconciliation of segment operating income to Income before Income Taxes:



(In millions)	2015				2014				2013
Sales
North America	$	7,774			$	8,085			$	8,684
Europe, Middle East and Africa	5,115				6,180				6,567
Asia Pacific	1,958				2,077				2,226
Latin America	1,596				1,796				2,063
Net Sales	$	16,443			$	18,138			$	19,540
Segment Operating Income
North America	$	1,108			$	803			$	691
Europe, Middle East and Africa	435				438				298
Asia Pacific	319				301				308
Latin America	160				170				283
Total Segment Operating Income	2,022				1,712				1,580
Less:
Rationalizations	114				95				58
Interest expense	412				428				392
Other (income) expense ⁽¹⁾	(115		)		302				97
Asset write-offs and accelerated depreciation	8				7				23
Corporate incentive compensation plans	103				97				108
Corporate pension curtailments/settlements ⁽²⁾	137				33				—
Intercompany profit elimination	3				(4		)		(4		)
Loss on deconsolidation of Venezuelan subsidiary	646			—	—			—	—
Retained expenses of divested operations	14				16				24
Other ⁽³⁾	92				51				69
Income before Income Taxes	$	608			$	687			$	813

(1) Refer to Note 4.

(2) Substantially all of the pension settlement charges of $137 million for the year ended December 31, 2015 and pension curtailment charges of $33 million for the year ended December 31, 2014 noted above related to our North America SBU; however, such costs were not included in North America segment operating income for purposes of management's assessment of SBU operating performance.

(3) Primarily represents unallocated corporate costs including, in 2015, certain costs for one-time strategic global initiatives. Also includes the elimination of $25 million, $24 million and $39 million for the years ended December 31, 2015, 2014 and 2013, respectively, of royalty income attributable to the strategic business units.

Schedule of Segment Reporting Information, by Segment

The following table presents segment assets at December 31:



(In millions)	2015		2014		2013
Assets
North America	$	4,808	$	4,929	$	4,977
Europe, Middle East and Africa	4,383		4,957		5,532
Asia Pacific	2,559		2,594		2,613
Latin America⁽¹⁾	1,469		2,090		2,384
Total Segment Assets	13,219		14,570		15,506
Corporate⁽²⁾	3,220		3,474		1,931
	$	16,439	$	18,044	$	17,437


(1)	Decrease in Latin America segment assets at December 31, 2015 was due primarily to the deconsolidation of our Venezuelan subsidiary on December 31, 2015. Refer to Note 1.


(2)	Corporate includes substantially all of our U.S. net deferred tax assets. Corporate assets increased in 2014 by $2,080 million due primarily to the release of substantially all of the valuation allowance on our net U.S. deferred tax assets.

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The following table presents geographic information. Net sales by country were determined based on the location of the selling subsidiary. Long-lived assets consisted of property, plant and equipment. Besides Germany, management did not consider the net sales of any other individual countries outside the United States to be significant to the consolidated financial statements. For long-lived assets only China and Germany were considered to be significant.



(In millions)	2015		2014		2013
Net Sales
United States	$	7,338	$	7,558	$	7,820
Germany	1,905		2,288		2,372
Other international	7,200		8,292		9,348
	$	16,443	$	18,138	$	19,540
Long-Lived Assets
United States	$	2,468	$	2,464	$	2,389
China	766		809		821
Germany	778		833		891
Other international	2,765		3,047		3,219
	$	6,777	$	7,153	$	7,320

Rationalizations, Asset sales, Other Expense and Asset Write-offs and Accelerated Depreciation Attributable to the SBUs

Rationalizations, as described in Note 2, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales, as described in Note 4, Other (Income) Expense, and Asset write-offs and accelerated depreciation were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows:



(In millions)	2015		2014			2013
Rationalizations
North America	$	9	$	(6	)	$	12
Europe, Middle East and Africa	95		89			26
Asia Pacific	4		9			16
Latin America	6		3			4
Total Segment Rationalizations	$	114	$	95		$	58



(In millions)	2015			2014			2013
Net (Gains) Losses on Asset Sales
North America	$	(1	)	$	(8	)	$	(4	)
Europe, Middle East and Africa	14			7			(1		)
Asia Pacific	(5		)	—			(2		)
Latin America	(1		)	—			(1		)
Total Segment Asset Sales	7			(1		)	(8		)
Corporate ⁽¹⁾	(78		)	(2		)	—
	$	(71	)	$	(3	)	$	(8	)


(1)	Corporate gain on asset sales in 2015 included a $48 million gain on the dissolution of our global alliance with SRI and a $30 million gain on the sale of our investment in shares of SRI. Refer to Note 5.



(In millions)	2015		2014		2013
Asset Write-offs and Accelerated Depreciation
Europe, Middle East and Africa	$	8	$	7	$	23
Total Segment Asset Write-offs and Accelerated Depreciation	$	8	$	7	$	23

Segment Capital Expenditures Depreciation and Amortization

The following tables present segment capital expenditures, depreciation and amortization:



(In millions)	2015		2014		2013
Capital Expenditures
North America	$	353	$	282	$	262
Europe, Middle East and Africa	223		266		332
Asia Pacific	124		154		257
Latin America	125		152		243
Total Segment Capital Expenditures	825		854		1,094
Corporate ⁽¹⁾	158		69		74
	$	983	$	923	$	1,168


(1)	Corporate capital expenditures in 2015 include approximately $140 million related to the construction of our new manufacturing facility in San Luis Potosi, Mexico.



(In millions)	2015		2014		2013
Depreciation and Amortization
North America	$	270	$	274	$	275
Europe, Middle East and Africa	186		220		228
Asia Pacific	114		105		93
Latin America	94		102		84
Total Segment Depreciation and Amortization	664		701		680
Corporate	34		31		42
	$	698	$	732	$	722

Segment Equity In Net Income of Investees Accounted For By Equity Method

The following table presents segment equity in the net income of investees accounted for by the equity method:



(In millions)	2015			2014			2013
Equity in (Income)
North America	$	(3	)	$	(5	)	$	(8	)
Europe, Middle East and Africa	(1		)	—			—
Asia Pacific⁽¹⁾	(12		)	(23		)	(23		)
Total Segment Equity in (Income)	$	(16	)	$	(28	)	$	(31	)


(1)	Substantially all of the Asia Pacific segment equity in income related to 25% interests in NGY and DGT which ceased to be recognized effective October 1, 2015 following the dissolution of the global alliance with SRI. Refer to Note 5.