NOTE 13 – Segment Information

The Company is principally engaged in the production and sale of starches and sweeteners for a wide range of industries, and is managed geographically on a regional basis. The Company’s operations are classified into four reportable business segments: North America, South America, Asia Pacific, and Europe, Middle East, and Africa (“EMEA”). Its North America segment includes businesses in the U.S., Canada, and Mexico. The Company’s South America segment includes businesses in Brazil, Colombia, Ecuador, and the Southern Cone of South America, which includes Argentina, Chile, Peru, and Uruguay. Its Asia Pacific segment includes businesses in South Korea, Thailand, Malaysia, China, Japan, Indonesia, the Philippines, Singapore, India, Australia, and New Zealand. The Company’s EMEA segment includes businesses in the United Kingdom, Germany, South Africa, Pakistan, and Kenya. The Company does not aggregate its operating segments when determining its reportable segments. Net sales by product are not presented because to do so would be impracticable.


(in millions)	2018		2017		2016
Net sales to unaffiliated customers:
North America:
Net sales before shipping and handling costs	$	3,857	$	3,843	$	3,734
Less: shipping and handling costs		346		314		287
Net sales	$	3,511	$	3,529	$	3,447

South America:
Net sales before shipping and handling costs	$	988	$	1,052	$	1,054
Less: shipping and handling costs		45		45		44
Net sales	$	943	$	1,007	$	1,010

Asia Pacific:
Net sales before shipping and handling costs	$	837	$	772	$	738
Less: shipping and handling costs		34		32		29
Net sales	$	803	$	740	$	709

EMEA:
Net sales before shipping and handling costs	$	607	$	577	$	556
Less: shipping and handling costs		23		21		18
Net sales	$	584	$	556	$	538


(in millions)
Operating income:		2018		2017		2016
North America	$	545	$	654	$	606
South America		99		81		90
Asia Pacific		104		115		113
EMEA		116		114		107
Corporate		(97)		(86)		(88)
Subtotal		767		878		828
Restructuring/impairment charges (a)		(64)		(38)		(19)
Acquisition/integration costs		—		(4)		(3)
Charge for fair value markup of acquired inventory		—		(9)		—
Insurance settlement		—		9		—
Total operating income		703		836		806
Financing costs, net		86		73		66
Other, non-operating income		(4)		(6)		(2)
Income before income taxes	$	621	$	769	$	742

(a)

For 2018, includes $49 million of restructuring expenses as part of the Cost Smart cost of sales program in relation to the cessation of wet-milling at the Stockton, California plant, $11 million of restructuring costs related to Cost Smart SG&A program, $3 million of costs related to the North America finance transformation program, and $1 million of costs related to the leaf extraction process in Brazil. For 2017, includes $17 million of employee-related severance and other costs associated with the restructuring in Argentina, $13 million of restructuring of related to the leaf extraction process in Brazil, $6 million of employee-related severance and other costs associated with the Finance Transformation initiative, and $2 million of other restructuring charges including employee-related severance costs in North America and a refinement of estimates for prior year restructuring activities. For 2016, includes $11 million of employee-related severance and other costs associated with the execution of IT outsourcing contracts, $6 million of employee-related severance costs associated with the optimization initiative in North America and South America, and $2 million of costs attributable to the Port Colborne plant sale.

For 2018, includes $49 million of restructuring expenses as part of the Cost Smart cost of sales program in relation to the cessation of wet-milling at the Stockton, California plant, $11 million of restructuring costs related to Cost Smart SG&A program, $3 million of costs related to the North America finance transformation program, and $1 million of costs related to the leaf extraction process in Brazil. For 2017, includes $17 million of employee-related severance and other costs associated with the restructuring in Argentina, $13 million of restructuring of related to the leaf extraction process in Brazil, $6 million of employee-related severance and other costs associated with the Finance Transformation initiative, and $2 million of other restructuring charges including employee-related severance costs in North America and a refinement of estimates for prior year restructuring activities. For 2016, includes $11 million of employee-related severance and other costs associated with the execution of IT outsourcing contracts, $6 million of employee-related severance costs associated with the optimization initiative in North America and South America, and $2 million of costs attributable to the Port Colborne plant sale.vFor 2018, includes $49 million of restructuring expenses as part of the Cost Smart cost of sales program in relation to the cessation of wet-milling at the Stockton, California plant, $11 million of restructuring costs related to Cost Smart SG&A program, $3 million of costs related to the North America finance transformation program, and $1 million of costs related to the leaf extraction process in Brazil. For 2017, includes $17 million of employee-related severance and other costs associated with the restructuring in Argentina, $13 million of restructuring of related to the leaf extraction process in Brazil, $6 million of employee-related severance and other costs associated with the Finance Transformation initiative, and $2 million of other restructuring charges including employee-related severance costs in North America and a refinement of estimates for prior year restructuring activities. For 2016, includes $11 million of employee-related severance and other costs associated with the execution of IT outsourcing contracts, $6 million of employee-related severance costs associated with the optimization initiative in North America and South America, and $2 million of costs attributable to the Port Colborne plant sale.For 2018, includes $49 million of restructuring expenses as part of the Cost Smart cost of sales program in relation to the cessation of wet-milling at the Stockton, California plant, $11 million of restructuring costs related to Cost Smart SG&A program, $3 million of costs related to the North America finance transformation program, and $1 million of costs related to the leaf extraction process in Brazil. For 2017, includes $17 million of employee-related severance and other costs associated with the restructuring in Argentina, $13 million of restructuring of related to the leaf extraction process in Brazil, $6 million of employee-related severance and other costs associated with the Finance Transformation initiative, and $2 million of other restructuring charges including employee-related severance costs in North America and a refinement of estimates for prior year restructuring activities. For 2016, includes $11 million of employee-related severance and other costs associated with the execution of IT outsourcing contracts, $6 million of employee-related severance costs associated with the optimization initiative in North America and South America, and $2 million of costs attributable to the Port Colborne plant sale.
	As of December 31,
(in millions)	2018		2017
Total assets:
North America (a)	$	3,737	$	3,967
South America		711		812
Asia Pacific		792		774
EMEA		488		527
Total	$	5,728	$	6,080

(a)

For purposes of presentation, North America includes Corporate assets.


(in millions)	2018		2017		2016
Depreciation and amortization:
North America (a)	$	180	$	140	$	130
South America		24		27		26
Asia Pacific		27		25		23
EMEA		16		17		17
Total	$	247	$	209	$	196
Mechanical stores expense (b):
North America (a)	$	38	$	37	$	37
South America		11		12		12
Asia Pacific		5		5		5
EMEA		3		3		3
Total	$	57	$	57	$	57
Capital expenditures and mechanical stores purchases:
North America (a)	$	232	$	180	$	167
South America		61		50		56
Asia Pacific		39		51		41
EMEA		18		33		20
Total	$	350	$	314	$	284

(a)

For purposes of presentation, North America includes Corporate activities of depreciation, amortization, capital expenditures, and mechanical stores purchase, respectively.

(b)

Represents spare parts used in the production process. Such spare parts are recorded in PP&E as part of machinery and equipment until they are utilized in the manufacturing process and expensed as a period cost.

The following table presents net sales to unaffiliated customers by country of origin for the last three years:


	Net Sales
(in millions)	2018		2017		2016
U.S.	$	2,133	$	2,191	$	2,117
Mexico		997		952		955
Brazil		462		519		522
Canada		381		385		375
Korea		286		275		266
Others		1,582		1,510		1,469
Total	$	5,841	$	5,832	$	5,704

The following table presents long-lived assets (excluding intangible assets and deferred income taxes) by country at December 31:


	Long-lived Assets
(in millions)	2018		2017
U.S.	$	1,004	$	977
Mexico		318		306
Brazil		207		235
Canada		165		179
Thailand		137		137
Germany		129		133
Korea		110		109
Others		259		284
Total	$	2,329	$	2,360