ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

Registration of securities issued in business combination transactions

OPERATING SEGMENT INFORMATION

v2.4.0.6
OPERATING SEGMENT INFORMATION
 9 Months Ended 12 Months Ended
Sep. 30, 2012
Dec. 31, 2011
OPERATING SEGMENT INFORMATION Ìý Ìý
OPERATING SEGMENT INFORMATION

Ìý

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
SeptemberÌý30, 		Ìý Nine months
ended
SeptemberÌý30, 		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 $ 1,244 Ìý $ 1,209 Ìý $ 3,735 Ìý $ 3,391 Ìý

Performance Products

 Ìý Ìý 742 Ìý Ìý 846 Ìý Ìý 2,319 Ìý Ìý 2,546 Ìý

Advanced Materials

 Ìý Ìý 328 Ìý Ìý 349 Ìý Ìý 1,014 Ìý Ìý 1,059 Ìý

Textile Effects

 Ìý Ìý 182 Ìý Ìý 173 Ìý Ìý 562 Ìý Ìý 563 Ìý

Pigments

 Ìý Ìý 319 Ìý Ìý 455 Ìý Ìý 1,150 Ìý Ìý 1,243 Ìý

Eliminations

 Ìý Ìý (74 ) Ìý (56 ) Ìý (212 ) Ìý (213 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý $ 2,741 Ìý $ 2,976 Ìý $ 8,568 Ìý $ 8,589 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 $ 203 Ìý $ 136 Ìý $ 544 Ìý $ 392 Ìý

Performance Products

 Ìý Ìý 107 Ìý Ìý 97 Ìý Ìý 282 Ìý Ìý 325 Ìý

Advanced Materials

 Ìý Ìý 24 Ìý Ìý 2 Ìý Ìý 77 Ìý Ìý 69 Ìý

Textile Effects

 Ìý Ìý (22 ) Ìý (157 ) Ìý (37 ) Ìý (175 )

Pigments

 Ìý Ìý 69 Ìý Ìý 161 Ìý Ìý 346 Ìý Ìý 357 Ìý

Corporate and other(2)

 Ìý Ìý (41 ) Ìý (52 ) Ìý (125 ) Ìý (196 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Subtotal

 Ìý Ìý 340 Ìý Ìý 187 Ìý Ìý 1,087 Ìý Ìý 772 Ìý

Discontinued Operations(3)

 Ìý Ìý - Ìý Ìý 17 Ìý Ìý (4 ) Ìý (6 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý Ìý 340 Ìý Ìý 204 Ìý Ìý 1,083 Ìý Ìý 766 Ìý

Interest expense, net

 Ìý Ìý (59 ) Ìý (66 ) Ìý (181 ) Ìý (197 )

Income tax expense-continuing operations

 Ìý Ìý (62 ) Ìý (55 ) Ìý (188 ) Ìý (111 )

Income tax (expense) benefit-discontinued operations

 Ìý Ìý - Ìý Ìý (7 ) Ìý 2 Ìý Ìý 1 Ìý

Depreciation and amortization

 Ìý Ìý (102 ) Ìý (107 ) Ìý (306 ) Ìý (310 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

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

 Ìý $ 117 Ìý $ (31 ) $ 410 Ìý $ 149 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
(1)
Segment EBITDA is defined as net income (loss) attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International 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."

27. OPERATING SEGMENT INFORMATION

ÌýÌýÌýÌýÌýÌýÌýÌýWe derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of differentiated and commodity chemical products. During the first quarter of 2010, we began reporting our LIFO inventory valuation reserves as part of Corporate and other; these reserves were previously reported in our Performance Products segment. During the third quarter of 2010, we began reporting the amounts outstanding under the A/R Programs and certain purchase accounting adjustments as part of our Polyurethanes, Performance Products, Advanced Materials, Textile Effects and Pigments segments' assets. These amounts were previously reported as Corporate and other segment assets. In addition, we eliminated intercompany balances from the assets of each reportable segment. During the fourth quarter of 2010, we began reporting the (income) loss attributable to noncontrolling interests in the reporting segment to which the subsidiary relates. Previously, (income) loss attributable to noncontrolling interests was reported in our Corporate and other segment. All relevant information for prior periods has been reclassified to reflect these changes.

ÌýÌýÌýÌýÌýÌýÌýÌýWe have reported our operations through five segments: Polyurethanes, Advanced Materials, Textile Effects, Performance Products 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 Year ended DecemberÌý31, Ìý
Ìý
Ìý 2011 Ìý 2010 Ìý 2009 Ìý

Net Sales:

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

 Ìý $ 4,434 Ìý $ 3,605 Ìý $ 3,005 Ìý

Performance Products

 Ìý Ìý 3,301 Ìý Ìý 2,659 Ìý Ìý 2,090 Ìý

Advanced Materials

 Ìý Ìý 1,372 Ìý Ìý 1,244 Ìý Ìý 1,059 Ìý

Textile Effects

 Ìý Ìý 737 Ìý Ìý 787 Ìý Ìý 691 Ìý

Pigments

 Ìý Ìý 1,642 Ìý Ìý 1,213 Ìý Ìý 960 Ìý

Eliminations

 Ìý Ìý (265 ) Ìý (258 ) Ìý (140 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý $ 11,221 Ìý $ 9,250 Ìý $ 7,665 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý


Ìý

Ìý
Ìý Year ended DecemberÌý31, Ìý
Ìý
Ìý 2011 Ìý 2010 Ìý 2009 Ìý

Segment EBITDA(1):

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

 Ìý $ 469 Ìý $ 319 Ìý $ 388 Ìý

Performance Products

 Ìý Ìý 385 Ìý Ìý 363 Ìý Ìý 246 Ìý

Advanced Materials

 Ìý Ìý 125 Ìý Ìý 143 Ìý Ìý 59 Ìý

Textile Effects

 Ìý Ìý (199 ) Ìý 1 Ìý Ìý (64 )

Pigments

 Ìý Ìý 501 Ìý Ìý 205 Ìý Ìý (25 )

Corporate and other(2)

 Ìý Ìý (236 ) Ìý (224 ) Ìý (178 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Subtotal

 Ìý Ìý 1,045 Ìý Ìý 807 Ìý Ìý 426 Ìý

Discontinued Operations(3)

 Ìý Ìý (6 ) Ìý 53 Ìý Ìý (97 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý Ìý 1,039 Ìý Ìý 860 Ìý Ìý 329 Ìý

Interest expense, net

 Ìý Ìý (262 ) Ìý (248 ) Ìý (240 )

Income tax expense-continuing operations

 Ìý Ìý (113 ) Ìý (40 ) Ìý (159 )

Income tax benefit (expense)-discontinued operations

 Ìý Ìý 5 Ìý Ìý (10 ) Ìý 80 Ìý

Depreciation and amortization

 Ìý Ìý (416 ) Ìý (382 ) Ìý (420 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

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

 Ìý $ 253 Ìý $ 180 Ìý $ (410 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Depreciation and Amortization:

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

 Ìý $ 160 Ìý $ 155 Ìý $ 160 Ìý

Performance Products

 Ìý Ìý 110 Ìý Ìý 92 Ìý Ìý 78 Ìý

Advanced Materials

 Ìý Ìý 33 Ìý Ìý 33 Ìý Ìý 38 Ìý

Textile Effects

 Ìý Ìý 27 Ìý Ìý 26 Ìý Ìý 19 Ìý

Pigments

 Ìý Ìý 74 Ìý Ìý 67 Ìý Ìý 104 Ìý

Corporate and other(2)

 Ìý Ìý 12 Ìý Ìý 8 Ìý Ìý 19 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Subtotal

 Ìý Ìý 416 Ìý Ìý 381 Ìý Ìý 418 Ìý

Discontinued Operations

 Ìý Ìý - Ìý Ìý 1 Ìý Ìý 2 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý $ 416 Ìý $ 382 Ìý $ 420 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Capital Expenditures:

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

 Ìý $ 85 Ìý $ 59 Ìý $ 55 Ìý

Performance Products

 Ìý Ìý 96 Ìý Ìý 66 Ìý Ìý 70 Ìý

Advanced Materials

 Ìý Ìý 39 Ìý Ìý 24 Ìý Ìý 14 Ìý

Textile Effects

 Ìý Ìý 34 Ìý Ìý 23 Ìý Ìý 19 Ìý

Pigments

 Ìý Ìý 57 Ìý Ìý 49 Ìý Ìý 23 Ìý

Corporate and other(2)

 Ìý Ìý 19 Ìý Ìý 15 Ìý Ìý 8 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý $ 330 Ìý $ 236 Ìý $ 189 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý


Ìý

Ìý
Ìý DecemberÌý31, Ìý
Ìý
Ìý 2011 Ìý 2010 Ìý

Total Assets:

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Polyurethanes

 Ìý $ 3,086 Ìý $ 3,024 Ìý

Performance Products

 Ìý Ìý 2,340 Ìý Ìý 2,067 Ìý

Advanced Materials

 Ìý Ìý 1,307 Ìý Ìý 1,327 Ìý

Textile Effects

 Ìý Ìý 686 Ìý Ìý 776 Ìý

Pigments

 Ìý Ìý 1,384 Ìý Ìý 1,277 Ìý

Corporate and other(2)

 Ìý Ìý (473 ) Ìý (164 )
Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý $ 8,330 Ìý $ 8,307 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý
(1)
Segment EBITDA is defined as net income (loss) attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ InternationalÌýLLC 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 and non-operating income and expense.

(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 "NoteÌý25. Discontinued Operations."

Ìý
Ìý Year ended DecemberÌý31, Ìý
Ìý
Ìý 2011 Ìý 2010 Ìý 2009 Ìý

By Geographic Area

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Revenues(1):

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

United States

 Ìý $ 3,470 Ìý $ 2,777 Ìý $ 2,345 Ìý

China

 Ìý Ìý 944 Ìý Ìý 881 Ìý Ìý 561 Ìý

Mexico

 Ìý Ìý 723 Ìý Ìý 485 Ìý Ìý 432 Ìý

Germany

 Ìý Ìý 638 Ìý Ìý 519 Ìý Ìý 433 Ìý

Italy

 Ìý Ìý 558 Ìý Ìý 474 Ìý Ìý 415 Ìý

Other nations

 Ìý Ìý 4,888 Ìý Ìý 4,114 Ìý Ìý 3,479 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý $ 11,221 Ìý $ 9,250 Ìý $ 7,665 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Ìý
Ìý DecemberÌý31, Ìý
Ìý
Ìý 2011 Ìý 2010 Ìý

Long-lived assets(2):

 Ìý Ìý Ìý Ìý Ìý Ìý Ìý

United States

 Ìý $ 1,278 Ìý $ 1,305 Ìý

The Netherlands

 Ìý Ìý 310 Ìý Ìý 311 Ìý

United Kingdom

 Ìý Ìý 306 Ìý Ìý 320 Ìý

Saudi Arabia

 Ìý Ìý 243 Ìý Ìý 259 Ìý

Germany

 Ìý Ìý 205 Ìý Ìý 68 Ìý

Switzerland

 Ìý Ìý 166 Ìý Ìý 221 Ìý

Spain

 Ìý Ìý 157 Ìý Ìý 173 Ìý

Other nations

 Ìý Ìý 845 Ìý Ìý 812 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý

Total

 Ìý $ 3,510 Ìý $ 3,469 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý
(1)
Geographic information for revenues is based upon countries into which product is sold.

(2)
Long-lived assets are made up of property, plant and equipment, net.