Business Segments (Tables)

12 Months Ended

Dec. 31, 2017

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



(In millions)	2017		2016			2015
Sales
Americas	$	8,212	$	8,172		$	9,370
Europe, Middle East and Africa	4,928		4,880			5,115
Asia Pacific	2,237		2,106			1,958
Net Sales	$	15,377	$	15,158		$	16,443
Segment Operating Income
Americas	$	825	$	1,151		$	1,266
Europe, Middle East and Africa	355		461			435
Asia Pacific	342		373			319
Total Segment Operating Income	1,522		1,985			2,020
Less:
Rationalizations	135		210			114
Interest expense	335		372			438
Other (income) expense ⁽¹⁾	8		(10		)	(141		)
Asset write-offs and accelerated depreciation	40		20			8
Corporate incentive compensation plans	33		76			103
Pension curtailments/settlements ⁽²⁾	19		16			137
Intercompany profit elimination	2		2			3
Loss on deconsolidation of Venezuelan subsidiary	—		—			646
Retained expenses of divested operations	13		18			14
Other ⁽³⁾	59		74			90
Income before Income Taxes	$	878	$	1,207		$	608

(1) Refer to Note 4.

(2) Substantially all of the pension and curtailment settlement charges noted above relate to our SBUs; however, such costs were not included in segment operating income for purposes of management's assessment of SBU operating performance.

(3) Primarily represents unallocated corporate costs. Also includes the elimination of $32 million, $24 million and $25 million for the years ended December 31, 2017, 2016 and 2015, respectively, of royalty income attributable to the strategic business units.

Segment Assets

The following table presents segment assets at December 31:



(In millions)	2017		2016		2015
Assets
Americas	$	6,923	$	6,701	$	6,275
Europe, Middle East and Africa	4,995		4,385		4,377
Asia Pacific	2,681		2,515		2,559
Total Segment Assets	14,599		13,601		13,211
Corporate⁽¹⁾	2,465		2,910		3,180
	$	17,064	$	16,511	$	16,391


(1)	Corporate includes substantially all of our U.S. net deferred tax assets.

Geographic Information

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)	2017		2016		2015
Net Sales
United States	$	6,678	$	6,724	$	7,338
Germany	1,874		1,853		1,905
Other international	6,825		6,581		7,200
	$	15,377	$	15,158	$	16,443
Long-Lived Assets
United States	$	2,750	$	2,651	$	2,468
China	766		716		766
Germany	727		717		778
Other international	3,208		2,956		2,765
	$	7,451	$	7,040	$	6,777

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)	2017		2016		2015
Rationalizations
Americas	$	6	$	15	$	15
Europe, Middle East and Africa	111		184		95
Asia Pacific	2		1		4
Total Segment Rationalizations	119		200		114
Corporate	16		10		—
	$	135	$	210	$	114



(In millions)	2017			2016			2015
Net (Gains) Losses on Asset Sales
Americas	$	(4	)	$	(4	)	$	(2	)
Europe, Middle East and Africa	(10		)	(17		)	14
Asia Pacific	—			(1		)	(5		)
Total Segment Asset Sales	(14		)	(22		)	7
Corporate ⁽¹⁾	—			(9		)	(78		)
	$	(14	)	$	(31	)	$	(71	)


(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)	2017		2016		2015
Asset Write-offs and Accelerated Depreciation
Americas	$	—	$	1	$	—
Europe, Middle East and Africa	40		19		8
Asia Pacific	—		—		—
Total Segment Asset Write-offs and Accelerated Depreciation	$	40	$	20	$	8

Segment Capital Expenditures, Depreciation and Amortization

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



(In millions)	2017		2016		2015
Capital Expenditures
Americas	$	525	$	618	$	618
Europe, Middle East and Africa	159		191		223
Asia Pacific	164		137		124
Total Segment Capital Expenditures	848		946		965
Corporate	33		50		18
	$	881	$	996	$	983



(In millions)	2017		2016		2015
Depreciation and Amortization
Americas	$	398	$	366	$	364
Europe, Middle East and Africa	191		192		186
Asia Pacific	124		120		114
Total Segment Depreciation and Amortization	713		678		664
Corporate	68		49		34
	$	781	$	727	$	698

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

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



(In millions)	2017			2016			2015
Equity in (Income)
Americas	$	(5	)	$	—		$	(3	)
Europe, Middle East and Africa	—			(1		)	(1		)
Asia Pacific⁽¹⁾	—			—			(12		)
Total Segment Equity in (Income)	$	(5	)	$	(1	)	$	(16	)


(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.