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Business Segments (Tables)

12 Months Ended

Dec. 31, 2019

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



(In millions)	2019		2018			2017
Sales
Americas	$	7,922	$	8,168		$	8,212
Europe, Middle East and Africa	4,708		5,090			4,928
Asia Pacific	2,115		2,217			2,237
Net Sales	$	14,745	$	15,475		$	15,377
Segment Operating Income
Americas	$	550	$	654		$	847
Europe, Middle East and Africa	202		363			367
Asia Pacific	193		257			342
Total Segment Operating Income	945		1,274			1,556
Less:
Rationalizations	205		44			135
Interest expense	340		321			335
Other (income) expense ⁽¹⁾	98		(174		)	70
Asset write-offs and accelerated depreciation	15		4			40
Corporate incentive compensation plans	50		13			33
Retained expenses of divested operations	10		9			13
Other ⁽²⁾	50		46			52
Income before Income Taxes	$	177	$	1,011		$	878


(1)	Refer to Note to the Consolidated Financial Statements No. 5, Other (Income) Expense, in this Form 10-K.

(2)

Primarily represents unallocated corporate costs and the elimination of $17 million, $18 million and $30 million for the years ended December 31, 2019, 2018 and 2017, respectively, of royalty income attributable to the strategic business units.

Segment Assets

The following table presents segment assets at December 31:



(In millions)	2019		2018
Assets
Americas	$	7,606	$	7,160
Europe, Middle East and Africa	4,724		4,809
Asia Pacific	2,711		2,602
Total Segment Assets	15,041		14,571
Corporate⁽¹⁾	2,144		2,301
	$	17,185	$	16,872

(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)	2019		2018		2017
Net Sales
United States	$	6,489	$	6,692	$	6,678
Germany ⁽¹⁾	979		1,691		1,874
Other international	7,277		7,092		6,825
	$	14,745	$	15,475	$	15,377
Long-Lived Assets
United States	$	2,681	$	2,734
China	722		762
Other international	3,805		3,763
	$	7,208	$	7,259

(1)

The 2018 and 2019 decrease in net sales primarily related to a business reorganization that centralized our OE sales for EMEA in Luxembourg.

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

Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, in this Form 10-K, net (gains) losses on asset sales, as described in Note to the Consolidated Financial Statements No. 5, Other (Income) Expense, in this Form 10-K, 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)	2019		2018		2017
Rationalizations
Americas	$	90	$	3	$	6
Europe, Middle East and Africa	115		36		111
Asia Pacific	—		3		2
Total Segment Rationalizations	$	205	$	42	$	119
Corporate	—		2		16
	$	205	$	44	$	135



(In millions)	2019			2018			2017
Net (Gains) Losses on Asset Sales
Americas⁽¹⁾	$	—		$	(275	)	$	(4	)
Europe, Middle East and Africa	(16		)	2			(10		)
Total Segment Asset Sales	$	(16	)	$	(273	)	$	(14	)


(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)	2019		2018		2017
Asset Write-offs and Accelerated Depreciation
Americas	$	13	$	—	$	—
Europe, Middle East and Africa	2		4		40
Total Segment Asset Write-offs and Accelerated Depreciation	$	15	$	4	$	40

Segment Capital Expenditures, Depreciation and Amortization

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



(In millions)	2019		2018		2017
Capital Expenditures
Americas	$	369	$	406	$	525
Europe, Middle East and Africa	227		180		159
Asia Pacific	141		188		164
Total Segment Capital Expenditures	$	737	$	774	$	848
Corporate	33		37		33
	$	770	$	811	$	881



(In millions)	2019		2018		2017
Depreciation and Amortization
Americas	$	430	$	414	$	398
Europe, Middle East and Africa	197		201		191
Asia Pacific	133		131		124
Total Segment Depreciation and Amortization	$	760	$	746	$	713
Corporate	35		32		68
	$	795	$	778	$	781

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)	2019		2018			2017
Equity in (Income) Loss
Americas	$	32	$	11		$	(5	)
Europe, Middle East and Africa	—		(1		)	—
Total Segment Equity in (Income) Loss	$	32	$	10		$	(5	)