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Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Information

Schedule of segment reporting of net sales, operating income and total assets

(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.

Schedule of net sales to unaffiliated customers by country of origin

		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

Schedule of long-lived assets (excluding intangible assets) by country

		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

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