ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION

v2.4.0.8
OPERATING SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2014
OPERATING SEGMENT INFORMATION Ìý
OPERATING SEGMENT INFORMATION

18. OPERATING SEGMENT INFORMATION

ÌýÌýÌýÌýÌýÌýÌýÌýWe derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of differentiated chemical products. We have reported our operations through five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects and Pigments. We have organized our business and derived our operating segments around differences in product lines.

ÌýÌýÌýÌýÌýÌýÌýÌýThe major products of each reportable operating segment are as follows:

Segment
Ìý Products
Polyurethanes Ìý MDI, PO, polyols, PG, TPU, aniline and MTBE
Performance Products Ìý amines, surfactants, LAB, maleic anhydride, other performance chemicals, EG, olefins and technology licenses
Advanced Materials Ìý epoxy resin compounds and formulations; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane- based adhesives and tooling resin formulations
Textile Effects Ìý textile chemicals and dyes
Pigments Ìý titanium dioxide

ÌýÌýÌýÌýÌýÌýÌýÌýSales between segments are generally recognized at external market prices and are eliminated in consolidation. We use EBITDA to measure the financial performance of our global business units and for reporting the results of our operating segments. This measure includes all operating items relating to the businesses. The EBITDA of operating segments excludes items that principally apply to our Company as a whole. The revenues and EBITDA for each of our reportable operating segments are as follows (dollars in millions):

Ìý
 Ìý Three months
ended
MarchÌý31,		 Ìý
Ìý
 Ìý 2014 Ìý 2013 Ìý

Revenues:

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

 Ìý $ 1,200 Ìý $ 1,182 Ìý

Performance Products

 Ìý Ìý 765 Ìý Ìý 722 Ìý

Advanced Materials

 Ìý Ìý 319 Ìý Ìý 336 Ìý

Textile Effects

 Ìý Ìý 224 Ìý Ìý 188 Ìý

Pigments

 Ìý Ìý 318 Ìý Ìý 330 Ìý

Eliminations

 Ìý Ìý (71 ) Ìý (56 )
Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � �

Total

 Ìý $ 2,755 Ìý $ 2,702 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � �
� � � � � � � �
Ìý Ìý Ìý Ìý Ìý Ìý

ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation:

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Segment EBITDA(1):

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

 Ìý $ 158 Ìý $ 167 Ìý

Performance Products

 Ìý Ìý 92 Ìý Ìý 49 Ìý

Advanced Materials

 Ìý Ìý 41 Ìý Ìý 3 Ìý

Textile Effects

 Ìý Ìý 8 Ìý Ìý (27 )

Pigments

 Ìý Ìý 13 Ìý Ìý 3 Ìý

Corporate and other(2)

 Ìý Ìý (44 ) Ìý (80 )
Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � �

Subtotal

 Ìý Ìý 268 Ìý Ìý 115 Ìý

Discontinued Operations(3)

 Ìý Ìý (7 ) Ìý (3 )
Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � �

Total

 Ìý Ìý 261 Ìý Ìý 112 Ìý

Interest expense

 Ìý Ìý (48 ) Ìý (51 )

Income tax (expense) benefit—continuing operations

 Ìý Ìý (36 ) Ìý 20 Ìý

Income tax benefit—discontinued operations

 Ìý Ìý â€� Ìý Ìý 2 Ìý

Depreciation and amortization

 Ìý Ìý (123 ) Ìý (107 )
Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � �

Net income (loss) attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation

 Ìý $ 54 Ìý $ (24 )
Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � �
� � � � � � � �
Ìý Ìý Ìý Ìý Ìý Ìý


Ìý

Ìý
 Ìý Three months
ended
MarchÌý31,		 Ìý
Ìý
 Ìý 2014 Ìý 2013 Ìý

ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International:

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Segment EBITDA(1):

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

 Ìý $ 158 Ìý $ 167 Ìý

Performance Products

 Ìý Ìý 92 Ìý Ìý 49 Ìý

Advanced Materials

 Ìý Ìý 41 Ìý Ìý 3 Ìý

Textile Effects

 Ìý Ìý 8 Ìý Ìý (27 )

Pigments

 Ìý Ìý 13 Ìý Ìý 3 Ìý

Corporate and other(2)

 Ìý Ìý (44 ) Ìý (79 )
Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � �

Subtotal

 Ìý Ìý 268 Ìý Ìý 116 Ìý

Discontinued Operations(3)

 Ìý Ìý (7 ) Ìý (3 )
Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � �

Total

 Ìý Ìý 261 Ìý Ìý 113 Ìý

Interest expense

 Ìý Ìý (51 ) Ìý (54 )

Income tax (expense) benefit—continuing operations

 Ìý Ìý (37 ) Ìý 18 Ìý

Income tax benefit—discontinued operations

 Ìý Ìý â€� Ìý Ìý 2 Ìý

Depreciation and amortization

 Ìý Ìý (116 ) Ìý (102 )
Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � �

Net income (loss) attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ InternationalÌýLLC

 Ìý $ 57 Ìý $ (23 )
Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � �
� � � � � � � �
Ìý Ìý Ìý Ìý Ìý Ìý
(1)
Segment EBITDA is defined as net income (loss) attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation or ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International, as appropriate, before interest, income tax, depreciation and amortization, and certain Corporate and other items.

(2)
Corporate and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, loss on early extinguishment of debt, unallocated restructuring, impairment and plant closing costs, nonoperating income and expense, benzene sales and gains and losses on the disposition of corporate assets.

(3)
The operating results of our former polymers, base chemicals and Australian styrenics businesses are classified as discontinued operations, and, accordingly, the revenues of these businesses are excluded for all periods presented. The EBITDA of our former polymers, base chemicals and Australian styrenics businesses are included in discontinued operations for all periods presented.