Business Segments (Tables)

12 Months Ended

Dec. 31, 2016

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



(In millions)	2016			2015			2014
Sales
Americas	$	8,172		$	9,370		$	9,881
Europe, Middle East and Africa	4,880			5,115			6,180
Asia Pacific	2,106			1,958			2,077
Net Sales	$	15,158		$	16,443		$	18,138
Segment Operating Income
Americas	$	1,151		$	1,266		$	967
Europe, Middle East and Africa	461			435			438
Asia Pacific	373			319			301
Total Segment Operating Income	1,985			2,020			1,706
Less:
Rationalizations	210			114			95
Interest expense	372			438			444
Other (income) expense ⁽¹⁾	(10		)	(141		)	286
Asset write-offs and accelerated depreciation	20			8			7
Corporate incentive compensation plans	76			103			97
Corporate pension curtailments/settlements ⁽²⁾	16			137			33
Intercompany profit elimination	2			3			(9		)
Loss on deconsolidation of Venezuelan subsidiary	—			646			—
Retained expenses of divested operations	18			14			16
Other ⁽³⁾	74			90			50
Income before Income Taxes	$	1,207		$	608		$	687

(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 $24 million, $25 million and $24 million for the years ended December 31, 2016, 2015 and 2014, respectively, of royalty income attributable to the strategic business units.

Segment Assets

The following table presents segment assets at December 31:



(In millions)	2016		2015		2014
Assets
Americas⁽¹⁾	$	6,701	$	6,275	$	7,019
Europe, Middle East and Africa	4,385		4,377		4,954
Asia Pacific	2,515		2,559		2,594
Total Segment Assets	13,601		13,211		14,567
Corporate⁽²⁾	2,910		3,180		3,433
	$	16,511	$	16,391	$	18,000


(1)	Decrease in Americas segment assets between 2014 and 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.

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)	2016		2015		2014
Net Sales
United States	$	6,724	$	7,338	$	7,558
Germany	1,853		1,905		2,288
Other international	6,581		7,200		8,292
	$	15,158	$	16,443	$	18,138
Long-Lived Assets
United States	$	2,651	$	2,468	$	2,464
China	716		766		809
Germany	717		778		833
Other international	2,956		2,765		3,047
	$	7,040	$	6,777	$	7,153

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)	2016		2015		2014
Rationalizations
Americas	$	15	$	15	$	(3	)
Europe, Middle East and Africa	184		95		89
Asia Pacific	1		4		9
Total Segment Rationalizations	200		114		95
Corporate	10		—		—
	$	210	$	114	$	95



(In millions)	2016			2015			2014
Net (Gains) Losses on Asset Sales
Americas	$	(4	)	$	(2	)	$	(8	)
Europe, Middle East and Africa	(17		)	14			7
Asia Pacific	(1		)	(5		)	—
Total Segment Asset Sales	(22		)	7			(1		)
Corporate ⁽¹⁾	(9		)	(78		)	(2		)
	$	(31	)	$	(71	)	$	(3	)


(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)	2016		2015		2014
Asset Write-offs and Accelerated Depreciation
Americas	$	1	$	—	$	—
Europe, Middle East and Africa	19		8		7
Asia Pacific	—		—		—
Total Segment Asset Write-offs and Accelerated Depreciation	$	20	$	8	$	7

Segment Capital Expenditures, Depreciation and Amortization

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



(In millions)	2016		2015		2014
Capital Expenditures
Americas	$	618	$	618	$	434
Europe, Middle East and Africa	191		223		266
Asia Pacific	137		124		154
Total Segment Capital Expenditures	946		965		854
Corporate	50		18		69
	$	996	$	983	$	923



(In millions)	2016		2015		2014
Depreciation and Amortization
Americas	$	366	$	364	$	376
Europe, Middle East and Africa	192		186		220
Asia Pacific	120		114		105
Total Segment Depreciation and Amortization	678		664		701
Corporate	49		34		31
	$	727	$	698	$	732

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)	2016			2015			2014
Equity in (Income)
Americas	$	—		$	(3	)	$	(5	)
Europe, Middle East and Africa	(1		)	(1		)	—
Asia Pacific⁽¹⁾	—			(12		)	(23		)
Total Segment Equity in (Income)	$	(1	)	$	(16	)	$	(28	)


(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.