ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION

v2.4.0.6
OPERATING SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2012
OPERATING SEGMENT INFORMATION Ìý
OPERATING SEGMENT INFORMATION

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
JuneÌý30, 		Ìý Six months
ended
JuneÌý30, 		Ìý
Ìý
 Ìý 2012 Ìý 2011 Ìý 2012 Ìý 2011 Ìý

Revenues

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

Polyurethanes

 Ìý $ 1,271 Ìý $ 1,135 Ìý $ 2,491 Ìý $ 2,182 Ìý

Performance Products

 Ìý Ìý 770 Ìý Ìý 896 Ìý Ìý 1,577 Ìý Ìý 1,700 Ìý

Advanced Materials

 Ìý Ìý 346 Ìý Ìý 360 Ìý Ìý 686 Ìý Ìý 710 Ìý

Textile Effects

 Ìý Ìý 195 Ìý Ìý 200 Ìý Ìý 380 Ìý Ìý 390 Ìý

Pigments

 Ìý Ìý 407 Ìý Ìý 424 Ìý Ìý 831 Ìý Ìý 788 Ìý

Eliminations

 Ìý Ìý (75 ) Ìý (81 ) Ìý (138 ) Ìý (157 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý $ 2,914 Ìý $ 2,934 Ìý $ 5,827 Ìý $ 5,613 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 $ 170 Ìý $ 142 Ìý $ 341 Ìý $ 256 Ìý

Performance Products

 Ìý Ìý 86 Ìý Ìý 113 Ìý Ìý 175 Ìý Ìý 228 Ìý

Advanced Materials

 Ìý Ìý 22 Ìý Ìý 28 Ìý Ìý 53 Ìý Ìý 67 Ìý

Textile Effects

 Ìý Ìý (10 ) Ìý (7 ) Ìý (15 ) Ìý (18 )

Pigments

 Ìý Ìý 131 Ìý Ìý 112 Ìý Ìý 277 Ìý Ìý 196 Ìý

Corporate and other(2)

 Ìý Ìý (44 ) Ìý (63 ) Ìý (85 ) Ìý (144 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Subtotal

 Ìý Ìý 355 Ìý Ìý 325 Ìý Ìý 746 Ìý Ìý 585 Ìý

Discontinued Operations(3)

 Ìý Ìý (3 ) Ìý (2 ) Ìý (4 ) Ìý (23 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý Ìý 352 Ìý Ìý 323 Ìý Ìý 742 Ìý Ìý 562 Ìý

Interest expense, net

 Ìý Ìý (57 ) Ìý (65 ) Ìý (116 ) Ìý (124 )

Income tax expense—continuing operations

 Ìý Ìý (65 ) Ìý (34 ) Ìý (125 ) Ìý (56 )

Income tax benefit—discontinued operations

 Ìý Ìý 1 Ìý Ìý 1 Ìý Ìý 2 Ìý Ìý 8 Ìý

Depreciation and amortization

 Ìý Ìý (107 ) Ìý (111 ) Ìý (216 ) Ìý (214 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

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

 Ìý $ 124 Ìý $ 114 Ìý $ 287 Ìý $ 176 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 $ 170 Ìý $ 142 Ìý $ 341 Ìý $ 256 Ìý

Performance Products

 Ìý Ìý 86 Ìý Ìý 113 Ìý Ìý 175 Ìý Ìý 228 Ìý

Advanced Materials

 Ìý Ìý 22 Ìý Ìý 28 Ìý Ìý 53 Ìý Ìý 67 Ìý

Textile Effects

 Ìý Ìý (10 ) Ìý (7 ) Ìý (15 ) Ìý (18 )

Pigments

 Ìý Ìý 131 Ìý Ìý 112 Ìý Ìý 277 Ìý Ìý 196 Ìý

Corporate and other(2)

 Ìý Ìý (43 ) Ìý (64 ) Ìý (84 ) Ìý (144 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Subtotal

 Ìý Ìý 356 Ìý Ìý 324 Ìý Ìý 747 Ìý Ìý 585 Ìý

Discontinued Operations(3)

 Ìý Ìý (3 ) Ìý (2 ) Ìý (4 ) Ìý (23 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý Ìý 353 Ìý Ìý 322 Ìý Ìý 743 Ìý Ìý 562 Ìý

Interest expense, net

 Ìý Ìý (61 ) Ìý (67 ) Ìý (122 ) Ìý (131 )

Income tax expense—continuing operations

 Ìý Ìý (65 ) Ìý (34 ) Ìý (126 ) Ìý (56 )

Income tax benefit—discontinued operations

 Ìý Ìý 1 Ìý Ìý 1 Ìý Ìý 2 Ìý Ìý 8 Ìý

Depreciation and amortization

 Ìý Ìý (101 ) Ìý (105 ) Ìý (204 ) Ìý (203 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

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

 Ìý $ 127 Ìý $ 117 Ìý $ 293 Ìý $ 180 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, non-operating 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. For more information, see "NoteÌý17. Discontinued Operations."