19. OPERATIONS BY SEGMENT AND GEOGRAPHIC AREAS AND IDENTIFIABLE ASSETS

We have four reportable business segments: Aerospace Materials, Industrial Materials, In Process Separation, and Additive Technologies. The Aerospace Materials segment principally includes advanced composites, carbon fiber, and structural film adhesives. The Industrial Materials segment includes structural composite materials (high performance automotive, motorsports, recreation, tooling and other structural materials markets) and process materials (aerospace, wind energy, and other process materials markets). The In Process Separation segment includes mining chemicals and phosphines. The Additive Technologies segment includes polymer additives, specialty additives and formulated resins.

The accounting policies of the reportable segments are the same as those described in Note 1. All intersegment sales prices are cost based. We evaluate the performance of our operating segments primarily based on earnings from operations of the respective segment. As described in Note 4, restructuring costs and impairment charges related to unprofitable sites are not charged to our operating segments consistent with management’s view of its businesses.

As discussed in Notes 1 and 15, we have elected to change our method of accounting for actuarial gains and losses for our continuing pension and OPEB plans. The new method recognizes actuarial gains and losses in our operating results in the year in which the gains and losses occur rather than amortizing them over future periods. Historically, total pension and OPEB costs have been allocated to each segment. In conjunction with the change in accounting principle, the service cost, which represents the benefits earned by active employees during the period, and amortization of prior service costs/credits will continue to be allocated to each segment. Interest costs, expected return on assets, and the MTM adjustment for pension and OPEB plans actuarial gains and losses will be included in corporate expense and not allocated to segments. Management believes this change in expense allocation will better reflect the operating results of each business and is consistent with management’s review of the operating results of the segments. The following tables reflect for each business segment the retrospective application of this expense allocation change for each period presented.

As discussed in Note 3, the former Coating Resins segment is reported as discontinued operations for all periods presented.

Following is selected information in relation to our continuing operations for the periods indicated as revised for all periods presented in accordance with our business segment structure:



	Aerospace Materials			Industrial Materials			In Process Separation			Additive Technologies			Total Segments
2013
Net sales to external customers	$	960.8		$	316.3		$	382.7		$	275.2		$	1,935.0
Intersegment net sales	1.5			—			—			0.3			1.8
Total net sales	$	962.3		$	316.3		$	382.7		$	275.5		$	1,936.8
Earnings from operations	$	177.6		$	19.0		$	86.5		$	39.6		$	322.7
Percentage of sales	18.5		%	6.0		%	22.6		%	14.4		%	16.7		%
Total assets	$	1,136.7		$	483.5		$	445.0		$	211.1		$	2,276.3
Capital expenditures	$	144.8		$	4.9		$	109.8		$	12.4		$	271.9
Depreciation and amortization	$	26.0		$	17.6		$	15.3		$	11.8		$	70.7
2012
Net sales to external customers	$	877.1		$	176.4		$	384.2		$	270.4		$	1,708.1
Intersegment net sales	—			—			—			0.8			0.8
Total net sales	$	877.1		$	176.4		$	384.2		$	271.2		$	1,708.9
Earnings from operations	$	168.5		$	11.4		$	95.3		$	40.8		$	316.0
Percentage of sales	19.2		%	6.5		%	24.8		%	15.0		%	18.5		%
Total assets	$	1,014.6		$	520.4		$	369.1		$	206.8		$	2,110.9
Capital expenditures	$	68.5		$	5.1		$	60.4		$	11.1		$	145.1
Depreciation and amortization	$	26.3		$	8.4		$	16.9		$	13.6		$	65.2
2011
Net sales to external customers	$	722.6		$	66.6		$	339.5		$	287.2		$	1,415.9
Intersegment net sales	—			—			—			0.9			0.9
Total net sales	$	722.6		$	66.6		$	339.5		$	288.1		$	1,416.8
Earnings from operations	$	124.9		$	11.9		$	73.0		$	41.9		$	251.7
Percentage of sales	17.3		%	17.9		%	21.5		%	14.5		%	17.8		%
Total assets	$	870.8		$	45.9		$	310.8		$	202.2		$	1,429.7
Capital expenditures	$	34.5		$	1.5		$	17.6		$	16.1		$	69.7
Depreciation and amortization	$	20.0		$	0.9		$	14.4		$	11.2		$	46.5

The following table provides a reconciliation of selected segment information to corresponding amounts contained in our consolidated financial statements:



	2013			2012			2011
Net sales:
Net sales from segments	$	1,936.8		$	1,708.9		$	1,416.8
Elimination of intersegment revenue	(1.8		)	(0.8		)	(0.9		)
Total consolidated net sales	$	1,935.0		$	1,708.1		$	1,415.9
Earnings from operations:
Earnings from segments	$	322.7		$	316.0		$	251.7
Corporate unallocated⁽¹⁾	(13.3		)	(183.8		)	(143.9		)
Total consolidated earnings from operations	$	309.4		$	132.2		$	107.8
Total assets:
Assets from segments	$	2,276.3		$	2,110.9		$	1,429.7
Other assets⁽²⁾	404.2			1,813.3			2,113.8
Total consolidated assets	$	2,680.5		$	3,924.2		$	3,543.5

(1)

For 2013, corporate and unallocated includes the following pre-tax charges: restructuring charges of $6.9 for 2013 initiatives within Industrial Materials and Aerospace Materials to reduce costs associated with the acquired Umeco business, charges of $3.0 for the write down of certain manufacturing assets in our Nagpur, India facility, charges of $1.2 for costs to divest the Umeco distribution product line, and benefits of $27.4 for net MTM adjustments of our pension and postretirement benefit plans (including the impact of inventory capitalization). For 2012, it includes the following net pre-tax charges: $55.5 for net MTM adjustments of our pension and postretirement benefit plans (including the impact of inventory capitalization); restructuring charges of $21.2 for personnel reductions in the Umeco business and across corporate functions to mitigate continuing costs following the anticipated sale of Coating Resins; charges of $16.7 for recognition in 2012 for the loss on the sale of the Stamford facility sale that occurred in 2011; charges of $8.4 related to costs incurred for the acquisition of Umeco; and accelerated depreciation of $2.5 for the sale-leaseback of our Stamford facility treated as a financing transaction. For 2011, it includes net pre-tax charges of $60.5 for net MTM adjustments of our pension and postretirement benefit plans (including the impact of inventory capitalization); $0.8 for restructuring charges, accelerated depreciation of $0.7 for the sale of our Stamford facility treated as a financing transaction, charges of $0.6 related to an adjustment to environmental accruals at a certain European site, and a gain on the sale of assets of a certain Latin American subsidiary for $3.3. Corporate and unallocated also included costs previously allocated to the operations of our discontinued Coating Resins segment of $12.2 for 2013, $66.5 for 2012 and $66.0 for 2011. It also included costs previously allocated to the operations of our discontinued Building Block Chemicals segment of $1.0 for 2011.


(2)	At December 31, 2013, 2012 and 2011, this includes cash and cash equivalents of $151.8, $179.3, and $415.8, respectively. At December 31, 2012, includes assets held for sale of $1,471.5; December 31, 2011 includes assets previously allocated to the Coatings business of $1,508.8.

Operations by Geographic Areas: Net sales to unaffiliated customers presented below are based upon the sales destination, which is consistent with how we manage our businesses. U.S. exports included in net sales are based upon the sales destination and represent direct sales of U.S.-based entities to unaffiliated customers outside of the United States. Identifiable assets are those assets used in our operations in each geographic area. Unallocated assets are primarily cash and cash equivalents, miscellaneous receivables, construction in progress, deferred taxes and the fair values of derivatives.



	2013		2012		2011
Net Sales:
United States	$	865.2	$	795.0	$	686.2
Other Americas	216.6		188.5		180.6
Asia / Pacific	244.2		212.3		188.8
Europe, Middle East and Africa	609.0		512.3		360.3
Total consolidated net sales	$	1,935.0	$	1,708.1	$	1,415.9
U.S. exports included in net sales above:
Other Americas	$	106.9	$	83.0	$	82.8
Asia / Pacific	42.7		33.7		40.7
Europe, Middle East and Africa	99.2		103.9		84.0
Total U.S. exports included in consolidated net sales	$	248.8	$	220.6	$	207.5
Identifiable assets:
United States	$	1,050.2	$	1,054.7	$	853.5
Other Americas	123.7		121.9		135.6
Asia / Pacific	131.3		119.2		87.3
Europe, Middle East and Africa	472.8		418.1		69.2
Total identifiable assets	1,778.0		1,713.9		1,145.6
Equity in net assets of and advances to associated companies	1.3		1.7		—
Unallocated assets⁽¹⁾	901.2		2,208.6		2,397.9
Total assets	$	2,680.5	$	3,924.2	$	3,543.5


(1)	At December 31, 2013, 2012 and 2011, this includes cash and cash equivalents of $151.8, $179.3, and $415.8, respectively. At December 31, 2012, includes assets held for sale of $1,471.5; December 31, 2011 includes assets previously allocated to the Coatings business of $1,508.8.

Significant customer: Approximately 20%, 19% and 18% of our 2013, 2012 and 2011 net sales, respectively, were to Boeing and its subcontractors, of which 20%, 18%, and 17% related to our Aerospace Materials segment, and 0%, 1%, and 1% related to our Industrial Materials segment.