ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION

v2.4.0.8
OPERATING SEGMENT INFORMATION
 9 Months Ended
Sep. 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 tooling materials; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane-based adhesives and tooling resin materials
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
SeptemberÌý30,		 Ìý Nine months
ended
SeptemberÌý30,		 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 $ 1,321 Ìý $ 1,306 Ìý $ 3,831 Ìý $ 3,734 Ìý

Performance Products

 Ìý Ìý 762 Ìý Ìý 779 Ìý Ìý 2,360 Ìý Ìý 2,278 Ìý

Advanced Materials

 Ìý Ìý 310 Ìý Ìý 309 Ìý Ìý 953 Ìý Ìý 966 Ìý

Textile Effects

 Ìý Ìý 221 Ìý Ìý 198 Ìý Ìý 693 Ìý Ìý 602 Ìý

Pigments

 Ìý Ìý 318 Ìý Ìý 310 Ìý Ìý 976 Ìý Ìý 974 Ìý

Eliminations

 Ìý Ìý (48 ) Ìý (60 ) Ìý (186 ) Ìý (180 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Total

 Ìý $ 2,884 Ìý $ 2,842 Ìý $ 8,627 Ìý $ 8,374 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 $ 162 Ìý $ 203 Ìý $ 506 Ìý $ 533 Ìý

Performance Products

 Ìý Ìý 123 Ìý Ìý 106 Ìý Ìý 332 Ìý Ìý 260 Ìý

Advanced Materials

 Ìý Ìý 51 Ìý Ìý 33 Ìý Ìý 142 Ìý Ìý 60 Ìý

Textile Effects

 Ìý Ìý 3 Ìý Ìý (18 ) Ìý 25 Ìý Ìý (54 )

Pigments

 Ìý Ìý 6 Ìý Ìý 27 Ìý Ìý 31 Ìý Ìý 55 Ìý

Corporate and other(2)

 Ìý Ìý (52 ) Ìý (46 ) Ìý (146 ) Ìý (187 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Subtotal

 Ìý Ìý 293 Ìý Ìý 305 Ìý Ìý 890 Ìý Ìý 667 Ìý

Discontinued Operations(3)

 Ìý Ìý â€� Ìý Ìý (2 ) Ìý (9 ) Ìý (3 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Total

 Ìý Ìý 293 Ìý Ìý 303 Ìý Ìý 881 Ìý Ìý 664 Ìý

Interest expense

 Ìý Ìý (49 ) Ìý (48 ) Ìý (148 ) Ìý (146 )

Income tax benefit (expense)—continuing operations

 Ìý Ìý 40 Ìý Ìý (81 ) Ìý (39 ) Ìý (105 )

Income tax benefit—discontinued operations

 Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý 2 Ìý Ìý â€� Ìý

Depreciation and amortization

 Ìý Ìý (96 ) Ìý (110 ) Ìý (335 ) Ìý (326 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

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

 Ìý $ 188 Ìý $ 64 Ìý $ 361 Ìý $ 87 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 $ 162 Ìý $ 203 Ìý $ 506 Ìý $ 533 Ìý

Performance Products

 Ìý Ìý 123 Ìý Ìý 106 Ìý Ìý 332 Ìý Ìý 260 Ìý

Advanced Materials

 Ìý Ìý 51 Ìý Ìý 33 Ìý Ìý 142 Ìý Ìý 60 Ìý

Textile Effects

 Ìý Ìý 3 Ìý Ìý (18 ) Ìý 25 Ìý Ìý (54 )

Pigments

 Ìý Ìý 6 Ìý Ìý 27 Ìý Ìý 31 Ìý Ìý 55 Ìý

Corporate and other(2)

 Ìý Ìý (53 ) Ìý (46 ) Ìý (148 ) Ìý (187 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Subtotal

 Ìý Ìý 292 Ìý Ìý 305 Ìý Ìý 888 Ìý Ìý 667 Ìý

Discontinued Operations(3)

 Ìý Ìý â€� Ìý Ìý (2 ) Ìý (9 ) Ìý (3 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

Total

 Ìý Ìý 292 Ìý Ìý 303 Ìý Ìý 879 Ìý Ìý 664 Ìý

Interest expense

 Ìý Ìý (52 ) Ìý (51 ) Ìý (155 ) Ìý (156 )

Income tax benefit (expense)—continuing operations

 Ìý Ìý 51 Ìý Ìý (80 ) Ìý (29 ) Ìý (106 )

Income tax benefit—discontinued operations

 Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý 2 Ìý Ìý â€� Ìý

Depreciation and amortization

 Ìý Ìý (93 ) Ìý (104 ) Ìý (322 ) Ìý (308 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
� � � � � � � � � � � � � �

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

 Ìý $ 198 Ìý $ 68 Ìý $ 375 Ìý $ 94 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.