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19. 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 |
2012 |
Ìý |
2011 |
Ìý |
|
Revenues
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|
Polyurethanes
|
Ìý |
$ |
1,220 |
Ìý |
$ |
1,047 |
Ìý |
|
Performance Products
|
Ìý |
Ìý |
807 |
Ìý |
Ìý |
804 |
Ìý |
|
Advanced Materials
|
Ìý |
Ìý |
340 |
Ìý |
Ìý |
350 |
Ìý |
|
Textile Effects
|
Ìý |
Ìý |
185 |
Ìý |
Ìý |
190 |
Ìý |
|
Pigments
|
Ìý |
Ìý |
424 |
Ìý |
Ìý |
364 |
Ìý |
|
Eliminations
|
Ìý |
Ìý |
(63 |
) |
Ìý |
(76 |
) |
| Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|
Total
|
Ìý |
$ |
2,913 |
Ìý |
$ |
2,679 |
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 |
$ |
171 |
Ìý |
$ |
114 |
Ìý |
|
Performance Products
|
Ìý |
Ìý |
89 |
Ìý |
Ìý |
115 |
Ìý |
|
Advanced Materials
|
Ìý |
Ìý |
31 |
Ìý |
Ìý |
39 |
Ìý |
|
Textile Effects
|
Ìý |
Ìý |
(5 |
) |
Ìý |
(11 |
) |
|
Pigments
|
Ìý |
Ìý |
146 |
Ìý |
Ìý |
84 |
Ìý |
|
Corporate and other(2)
|
Ìý |
Ìý |
(41 |
) |
Ìý |
(81 |
) |
| Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|
Subtotal
|
Ìý |
Ìý |
391 |
Ìý |
Ìý |
260 |
Ìý |
|
Discontinued Operations(3)
|
Ìý |
Ìý |
(1 |
) |
Ìý |
(21 |
) |
| Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|
Total
|
Ìý |
Ìý |
390 |
Ìý |
Ìý |
239 |
Ìý |
|
Interest expense, net
|
Ìý |
Ìý |
(59 |
) |
Ìý |
(59 |
) |
|
Income tax expense—continuing operations
|
Ìý |
Ìý |
(60 |
) |
Ìý |
(22 |
) |
|
Income tax benefit—discontinued operations
|
Ìý |
Ìý |
1 |
Ìý |
Ìý |
7 |
Ìý |
|
Depreciation and amortization
|
Ìý |
Ìý |
(109 |
) |
Ìý |
(103 |
) |
| Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|
Net income attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation
|
Ìý |
$ |
163 |
Ìý |
$ |
62 |
Ìý |
| Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
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 |
$ |
171 |
Ìý |
$ |
114 |
Ìý |
|
Performance Products
|
Ìý |
Ìý |
89 |
Ìý |
Ìý |
115 |
Ìý |
|
Advanced Materials
|
Ìý |
Ìý |
31 |
Ìý |
Ìý |
39 |
Ìý |
|
Textile Effects
|
Ìý |
Ìý |
(5 |
) |
Ìý |
(11 |
) |
|
Pigments
|
Ìý |
Ìý |
146 |
Ìý |
Ìý |
84 |
Ìý |
|
Corporate and other(2)
|
Ìý |
Ìý |
(41 |
) |
Ìý |
(80 |
) |
| Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|
Subtotal
|
Ìý |
Ìý |
391 |
Ìý |
Ìý |
261 |
Ìý |
|
Discontinued Operations(3)
|
Ìý |
Ìý |
(1 |
) |
Ìý |
(21 |
) |
| Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|
Total
|
Ìý |
Ìý |
390 |
Ìý |
Ìý |
240 |
Ìý |
|
Interest expense, net
|
Ìý |
Ìý |
(61 |
) |
Ìý |
(64 |
) |
|
Income tax expense—continuing operations
|
Ìý |
Ìý |
(61 |
) |
Ìý |
(22 |
) |
|
Income tax benefit—discontinued operations
|
Ìý |
Ìý |
1 |
Ìý |
Ìý |
7 |
Ìý |
|
Depreciation and amortization
|
Ìý |
Ìý |
(103 |
) |
Ìý |
(98 |
) |
| Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|
Net income attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International
|
Ìý |
$ |
166 |
Ìý |
$ |
63 |
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, non-operating income and expense 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. For more information, see "NoteÌý17. Discontinued Operations."
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