ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

�

Year ended DecemberÌý31,Ìý

�

2019

ÌýÌýÌýÌý

2018

ÌýÌýÌýÌý

2017

Revenues:

�

�

�

�

�

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Polyurethanes

$

3,911

�

$

4,282

�

$

3,764

Performance Products

�

1,158

�

�

1,301

�

�

1,156

Advanced Materials

�

1,044

�

�

1,116

�

�

1,040

Textile Effects

�

763

�

�

824

�

�

776

Corporate and eliminations

�

(79)

�

�

81

�

�

109

Total

$

6,797

�

$

7,604

�

$

6,845

�

�

�

�

�

�

�

�

�

ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation:

�

�

�

�

�

�

�

�

Segment adjusted EBITDA(1):

�

�

�

�

�

�

�

�

Polyurethanes

$

548

�

$

809

�

$

776

Performance Products

�

168

�

�

197

�

�

155

Advanced Materials

�

201

�

�

225

�

�

219

Textile Effects

�

84

�

�

101

�

�

83

Corporate and other(2)

�

(155)

�

�

(171)

�

�

(193)

Total

�

846

�

�

1,161

�

�

1,040

Reconciliation of adjusted EBITDA to net income:

�

�

�

�

�

�

�

�

Interest expense—continuing operations

�

(111)

�

�

(115)

�

�

(165)

Interest expense—discontinued operations

�

�

�

�

(36)

�

�

(19)

Income tax benefit (expense)—continuing operations

�

38

�

�

(45)

�

�

(20)

Income tax expense—discontinued operations

�

(35)

�

�

(86)

�

�

(111)

Depreciation and amortization—continuing operations

�

(270)

�

�

(255)

�

�

(236)

Depreciation and amortization—discontinued operations

�

(61)

�

�

(88)

�

�

(151)

Net income attributable to noncontrolling interests

�

36

�

�

313

�

�

105

Other adjustments:

�

�

�

�

�

�

�

�

Business acquisition and integration expenses and purchase accounting inventory adjustments

�

(5)

�

�

(9)

�

�

(19)

Merger costs

�

�

�

�

(2)

�

�

(28)

EBITDA from discontinued operations

�

265

�

�

171

�

�

511

Noncontrolling interest of discontinued operations

�

�

�

�

(232)

�

�

(49)

Fair value adjustments to Venator investment

�

(18)

�

�

(62)

�

�

�

Loss on early extinguishment of debt

�

(23)

�

�

(3)

�

�

(54)

Certain legal settlements and related (expenses) income

�

(6)

�

�

(1)

�

�

11

(Loss) gain on sale of businesses/assets

�

(21)

�

�

�

�

�

9

Certain nonrecurring information technology project implementation costs

�

(4)

�

�

�

�

�

�

Amortization of pension and postretirement actuarial losses

�

(66)

�

�

(67)

�

�

(69)

Plant incident remediation costs

�

(8)

�

�

�

�

�

(1)

U.S. Tax Reform Act impact on noncontrolling interest

�

�

�

�

�

�

�

6

Restructuring, impairment and plant closing and transition credits (costs)

�

41

�

�

6

�

�

(19)

Net income

$

598

�

$

650

�

$

741

�

�

�

�

�

�

�

�

�

�

�

�

Year ended December 31,

�

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

ÌýÌýÌýÌý

2017

Depreciation and Amortization:

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Polyurethanes

�

$

120

�

$

108

�

$

92

Performance Products

�

Ìý

81

�

Ìý

78

�

Ìý

78

Advanced Materials

�

Ìý

36

�

Ìý

37

�

Ìý

33

Textile Effects

�

Ìý

16

�

Ìý

16

�

Ìý

14

Corporate and other

�

Ìý

17

�

Ìý

16

�

Ìý

19

Total

�

$

270

�

$

255

�

$

236

�

�

Year ended December 31,

�

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

ÌýÌýÌýÌý

2017

Capital Expenditures:

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Polyurethanes

�

$

185

�

$

153

�

$

158

Performance Products

�

Ìý

32

�

Ìý

48

�

Ìý

35

Advanced Materials

�

Ìý

24

�

Ìý

20

�

Ìý

21

Textile Effects

�

Ìý

22

�

Ìý

20

�

Ìý

16

Corporate and other

�

Ìý

11

�

Ìý

10

�

Ìý

4

Total

�

$

274

�

$

251

�

$

234

�

�

DecemberÌý31,Ìý

�

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

Total Assets:

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Polyurethanes

�

$

3,437

�

$

3,129

Performance Products

�

Ìý

1,125

�

Ìý

1,161

Advanced Materials

�

Ìý

774

�

Ìý

796

Textile Effects

�

Ìý

511

�

Ìý

571

Corporate and other

�

Ìý

1,265

�

Ìý

1,187

Total

�

$

7,112

�

$

6,844

�

Year ended DecemberÌý31,Ìý

�

2019

ÌýÌýÌýÌý

2018

ÌýÌýÌýÌý

2017

ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International:

�

�

�

�

�

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Segment adjusted EBITDA(1):

�

�

�

�

�

�

�

�

Polyurethanes

$

548

�

$

809

�

$

776

Performance Products

�

168

�

�

197

�

�

155

Advanced Materials

�

201

�

�

225

�

�

219

Textile Effects

�

84

�

�

101

�

�

83

Corporate and other(2)

�

(150)

�

�

(167)

�

�

(189)

Total

�

851

�

�

1,165

�

�

1,044

Reconciliation of adjusted EBITDA to net income:

�

�

�

�

�

�

�

�

Interest expense—continuing operations

�

(126)

�

�

(136)

�

�

(181)

Interest expense—discontinued operations

�

�

�

�

(36)

�

�

(19)

Income tax benefit (expense)—continuing operations

�

41

�

�

(41)

�

�

(17)

Income tax expense—discontinued operations

�

(35)

�

�

(86)

�

�

(111)

Depreciation and amortization—continuing operations

�

(270)

�

�

(252)

�

�

(228)

Depreciation and amortization—discontinued operations

�

(61)

�

�

(88)

�

�

(151)

Net income attributable to noncontrolling interests

�

36

�

�

313

�

�

105

Other adjustments:

�

�

�

�

�

�

�

�

Business acquisition and integration expenses and purchase accounting inventory adjustments

�

(5)

�

�

(9)

�

�

(23)

Merger costs

�

�

�

�

(2)

�

�

(28)

EBITDA from discontinued operations

�

265

�

�

171

�

�

511

Noncontrolling interest of discontinued operations

�

�

�

�

(232)

�

�

(49)

Fair value adjustments to Venator investment

�

(18)

�

�

(62)

�

�

�

Loss on early extinguishment of debt

�

(23)

�

�

(3)

�

�

(54)

Certain legal settlements and related (expenses) income

�

(6)

�

�

(1)

�

�

11

(Loss) gain on sale of businesses/assets

�

(21)

�

�

�

�

�

10

Certain nonrecurring information technology project implementation costs

�

(4)

�

�

�

�

�

�

Amortization of pension and postretirement actuarial losses

�

(70)

�

�

(71)

�

�

(72)

Plant incident remediation costs

�

(8)

�

�

�

�

�

(1)

U.S. Tax Reform Act impact on noncontrolling interest

�

�

�

�

�

�

�

6

Restructuring, impairment and plant closing and transition credits (costs)

�

41

�

�

6

�

�

(19)

Net income

$

587

�

$

636

�

$

734

�

�

Year ended December 31,

�

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

ÌýÌýÌýÌý

2017

Depreciation and Amortization:

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Polyurethanes

�

$

120

�

$

108

�

$

92

Performance Products

�

Ìý

81

�

Ìý

78

�

Ìý

78

Advanced Materials

�

Ìý

36

�

Ìý

37

�

Ìý

33

Textile Effects

�

Ìý

16

�

Ìý

16

�

Ìý

14

Corporate and other

�

Ìý

17

�

Ìý

13

�

Ìý

11

Total

�

$

270

�

$

252

�

$

228

�

�

Year ended December 31,

�

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

ÌýÌýÌýÌý

2017

Capital Expenditures:

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Polyurethanes

�

$

185

�

$

153

�

$

158

Performance Products

�

Ìý

32

�

Ìý

48

�

Ìý

35

Advanced Materials

�

Ìý

24

�

Ìý

20

�

Ìý

21

Textile Effects

�

Ìý

22

�

Ìý

20

�

Ìý

16

Corporate and other

�

Ìý

11

�

Ìý

10

�

Ìý

4

Total

�

$

274

�

$

251

�

$

234

�

�

DecemberÌý31,Ìý

�

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

Total Assets:

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Polyurethanes

�

$

3,437

�

$

3,129

Performance Products

�

Ìý

1,125

�

Ìý

1,161

Advanced Materials

�

Ìý

774

�

Ìý

796

Textile Effects

�

Ìý

511

�

Ìý

571

Corporate and other

�

Ìý

1,668

�

Ìý

1,569

Total

�

$

7,515

�

$

7,226

�

�

DecemberÌý31,Ìý

�

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

Goodwill:

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

�

�

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Polyurethanes

�

$

177

�

$

173

Performance Products

�

Ìý

16

�

Ìý

16

Advanced Materials

�

Ìý

83

�

Ìý

86

Total

�

$

276

�

$

275

(1)ÌýÌýÌýÌýÌýÌýÌýÌýÌýWe use segment adjusted EBITDA as the measure of each segment’s profit or loss. We believe that segment adjusted EBITDA more accurately reflects what management uses to make decisions about resources to be allocated to the segments and assess their financial performance. Segment adjusted EBITDA is defined as net income of ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation or ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) business acquisition and integration expenses and purchase accounting inventory adjustments; (b) merger costs; (c)ÌýEBITDA from discontinued operations; (d) noncontrolling interest of discontinued operations; (e) fair value adjustments to Venator investment; (f) loss on early extinguishment of debt; (g) certain legal settlements and related income (expenses); (h) gain on sale of businesses/assets; (i) certain nonrecurring information technology project implementation costs; (j) amortization of pension and postretirement actuarial losses; (k) plant incident remediation costs; (l) U.S. Tax Reform Act impact on noncontrolling interest; and (m) restructuring, impairment, plant closing and transition credits (costs).

(2)ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýCorporate and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, nonoperating income and expense, benzene sales and gains and losses on the disposition of corporate assets.