Business Segments (Tables)

12 Months Ended

Dec. 31, 2018

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



(In millions)	2018			2017		2016
Sales
Americas	$	8,168		$	8,212	$	8,172
Europe, Middle East and Africa	5,090			4,928		4,880
Asia Pacific	2,217			2,237		2,106
Net Sales	$	15,475		$	15,377	$	15,158
Segment Operating Income
Americas	$	654		$	847	$	1,151
Europe, Middle East and Africa	363			367		472
Asia Pacific	257			342		373
Total Segment Operating Income	1,274			1,556		1,996
Less:
Rationalizations	44			135		210
Interest expense	321			335		372
Other (income) expense ⁽¹⁾	(174		)	70		25
Asset write-offs and accelerated depreciation	4			40		20
Corporate incentive compensation plans	13			33		76
Intercompany profit elimination	4			2		2
Retained expenses of divested operations	9			13		18
Other ⁽²⁾	42			50		66
Income before Income Taxes	$	1,011		$	878	$	1,207


(1)	Refer to Note 5.


(2)	Primarily represents unallocated corporate costs and the elimination of $18 million, $30 million and $22 million for the years ended December 31, 2018, 2017 and 2016, respectively, of royalty income attributable to the strategic business units.

Segment Assets

The following table presents segment assets at December 31:



(In millions)	2018		2017
Assets
Americas	$	7,160	$	6,923
Europe, Middle East and Africa	4,809		4,995
Asia Pacific	2,602		2,681
Total Segment Assets	14,571		14,599
Corporate⁽¹⁾	2,301		2,465
	$	16,872	$	17,064


(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 was considered to be significant.



(In millions)	2018		2017		2016
Net Sales
United States	$	6,692	$	6,678	$	6,724
Germany	1,883		1,874		1,853
Other international	6,900		6,825		6,581
	$	15,475	$	15,377	$	15,158
Long-Lived Assets
United States	$	2,734	$	2,750
China	762		766
Other international	3,763		3,935
	$	7,259	$	7,451

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

Rationalizations, as described in Note 3, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales, as described in Note 5, 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)	2018		2017		2016
Rationalizations
Americas	$	3	$	6	$	15
Europe, Middle East and Africa	36		111		184
Asia Pacific	3		2		1
Total Segment Rationalizations	42		119		200
Corporate	2		16		10
	$	44	$	135	$	210



(In millions)	2018			2017			2016
Net (Gains) Losses on Asset Sales
Americas⁽¹⁾	$	(275	)	$	(4	)	$	(4	)
Europe, Middle East and Africa	2			(10		)	(17		)
Asia Pacific	—			—			(1		)
Total Segment Asset Sales	(273		)	(14		)	(22		)
Corporate	—			—			(9		)
	$	(273	)	$	(14	)	$	(31	)


(1)	Americas Net (Gains) Losses on Asset Sales for the year ended December 31, 2018 includes the gain of $272 million related to the TireHub transaction, net of transaction costs.



(In millions)	2018		2017		2016
Asset Write-offs and Accelerated Depreciation
Americas	$	—	$	—	$	1
Europe, Middle East and Africa	4		40		19
Total Segment Asset Write-offs and Accelerated Depreciation	$	4	$	40	$	20

Segment Capital Expenditures, Depreciation and Amortization

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



(In millions)	2018		2017		2016
Capital Expenditures
Americas	$	406	$	525	$	618
Europe, Middle East and Africa	180		159		191
Asia Pacific	188		164		137
Total Segment Capital Expenditures	774		848		946
Corporate	37		33		50
	$	811	$	881	$	996



(In millions)	2018		2017		2016
Depreciation and Amortization
Americas	$	414	$	398	$	366
Europe, Middle East and Africa	201		191		192
Asia Pacific	131		124		120
Total Segment Depreciation and Amortization	746		713		678
Corporate	32		68		49
	$	778	$	781	$	727

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)	2018			2017			2016
Equity in (Income)
Americas	$	11		$	(5	)	$	—
Europe, Middle East and Africa	(1		)	—			(1		)
Total Segment Equity in (Income)	$	10		$	(5	)	$	(1	)