ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION

v2.4.0.8
OPERATING SEGMENT INFORMATION
6 Months Ended
Jun. 30, 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
JuneÌý30,
Ìý Six months
ended
JuneÌý30,
Ìý
Ìý
Ìý 2014 Ìý 2013 Ìý 2014 Ìý 2013 Ìý

Revenues:

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

Ìý $ 1,310 Ìý $ 1,246 Ìý $ 2,510 Ìý $ 2,428 Ìý

Performance Products

Ìý Ìý 833 Ìý Ìý 777 Ìý Ìý 1,598 Ìý Ìý 1,499 Ìý

Advanced Materials

Ìý Ìý 324 Ìý Ìý 321 Ìý Ìý 643 Ìý Ìý 657 Ìý

Textile Effects

Ìý Ìý 248 Ìý Ìý 216 Ìý Ìý 472 Ìý Ìý 404 Ìý

Pigments

Ìý Ìý 340 Ìý Ìý 334 Ìý Ìý 658 Ìý Ìý 664 Ìý

Eliminations

Ìý Ìý (67 ) Ìý (64 ) Ìý (138 ) Ìý (120 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Total

Ìý $ 2,988 Ìý $ 2,830 Ìý $ 5,743 Ìý $ 5,532 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý 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 Ìý Ìý Ìý Ìý Ìý Ìý

Segment EBITDA(1):

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

Ìý $ 186 Ìý $ 163 Ìý $ 344 Ìý $ 330 Ìý

Performance Products

Ìý Ìý 117 Ìý Ìý 105 Ìý Ìý 209 Ìý Ìý 154 Ìý

Advanced Materials

Ìý Ìý 50 Ìý Ìý 24 Ìý Ìý 91 Ìý Ìý 27 Ìý

Textile Effects

Ìý Ìý 14 Ìý Ìý (9 ) Ìý 22 Ìý Ìý (36 )

Pigments

Ìý Ìý 12 Ìý Ìý 25 Ìý Ìý 25 Ìý Ìý 28 Ìý

Corporate and other(2)

Ìý Ìý (50 ) Ìý (61 ) Ìý (94 ) Ìý (141 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Subtotal

Ìý Ìý 329 Ìý Ìý 247 Ìý Ìý 597 Ìý Ìý 362 Ìý

Discontinued Operations(3)

Ìý Ìý (2 ) Ìý 2 Ìý Ìý (9 ) Ìý (1 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Total

Ìý Ìý 327 Ìý Ìý 249 Ìý Ìý 588 Ìý Ìý 361 Ìý

Interest expense

Ìý Ìý (51 ) Ìý (47 ) Ìý (99 ) Ìý (98 )

Income tax expense—continuing operations

Ìý Ìý (43 ) Ìý (44 ) Ìý (79 ) Ìý (24 )

Income tax benefit (expense)—discontinued operations

Ìý Ìý 2 Ìý Ìý (2 ) Ìý 2 Ìý Ìý â€� Ìý

Depreciation and amortization

Ìý Ìý (116 ) Ìý (109 ) Ìý (239 ) Ìý (216 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

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

Ìý $ 119 Ìý $ 47 Ìý $ 173 Ìý $ 23 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �
� � � � � � � � � � � � � �
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International:

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Segment EBITDA(1):

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

Ìý $ 186 Ìý $ 163 Ìý $ 344 Ìý $ 330 Ìý

Performance Products

Ìý Ìý 117 Ìý Ìý 105 Ìý Ìý 209 Ìý Ìý 154 Ìý

Advanced Materials

Ìý Ìý 50 Ìý Ìý 24 Ìý Ìý 91 Ìý Ìý 27 Ìý

Textile Effects

Ìý Ìý 14 Ìý Ìý (9 ) Ìý 22 Ìý Ìý (36 )

Pigments

Ìý Ìý 12 Ìý Ìý 25 Ìý Ìý 25 Ìý Ìý 28 Ìý

Corporate and other(2)

Ìý Ìý (51 ) Ìý (62 ) Ìý (95 ) Ìý (141 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Subtotal

Ìý Ìý 328 Ìý Ìý 246 Ìý Ìý 596 Ìý Ìý 362 Ìý

Discontinued Operations(3)

Ìý Ìý (2 ) Ìý 2 Ìý Ìý (9 ) Ìý (1 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Total

Ìý Ìý 326 Ìý Ìý 248 Ìý Ìý 587 Ìý Ìý 361 Ìý

Interest expense

Ìý Ìý (52 ) Ìý (51 ) Ìý (103 ) Ìý (105 )

Income tax expense—continuing operations

Ìý Ìý (43 ) Ìý (44 ) Ìý (80 ) Ìý (26 )

Income tax benefit (expense)—discontinued operations

Ìý Ìý 2 Ìý Ìý (2 ) Ìý 2 Ìý Ìý â€� Ìý

Depreciation and amortization

Ìý Ìý (113 ) Ìý (102 ) Ìý (229 ) Ìý (204 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Net income attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International LLC

Ìý $ 120 Ìý $ 49 Ìý $ 177 Ìý $ 26 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �
� � � � � � � � � � � � � �
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

(1)
Segment EBITDA is defined as net income 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.