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Segment Information

12 Months Ended

Dec. 31, 2019

Segment Information

Segment Information

NOTE 12 – Segment Information

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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 EMEA. Its North America segment includes businesses in the U.S., Mexico, and Canada. The Company’s South America segment includes businesses in Brazil, Colombia, Ecuador, and the Southern Cone of South America, which includes Argentina, Peru, Chile, and Uruguay. Its Asia-Pacific segment includes businesses in South Korea, Thailand, China, Australia, Japan, Indonesia, Singapore, the Philippines, India, Malaysia, New Zealand, and Vietnam. The Company’s EMEA segment includes businesses in Pakistan, Germany, the United Kingdom, South Africa, and Kenya. Net sales by product are not presented because to do so would be impracticable.

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​	​	​	​	​	​	​	​	​	​	​
(in millions)		2019			2018			2017		​
Net sales to unaffiliated customers:	​	​	​	​	​	​	​	​	​	​
North America	​	$	3,834	​	$	3,857	​	$	3,843	​
South America	​	​	960	​	​	988	​	​	1,052	​
Asia-Pacific	​	​	823	​	​	837	​	​	772	​
EMEA	​	​	592	​	​	607	​	​	577	​
Total	​	$	6,209	​	$	6,289	​	$	6,244	​

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​	​	​	​	​	​	​	​	​	​	​
(in millions)	​	​	2019	​		2018			2017
Operating income:	​	​	​	​	​	​	​	​	​	​
North America	​	$	522	​	$	545	​	$	654	​
South America	​	​	96	​	​	99	​	​	81	​
Asia-Pacific	​	​	87	​	​	104	​	​	115	​
EMEA	​	​	99	​	​	116	​	​	114	​
Corporate	​	​	(99)	​	​	(97)	​	​	(86)	​
Subtotal	​	​	705	​	​	767	​	​	878	​
Restructuring/impairment charges (a)	​	​	(57)	​	​	(64)	​	​	(38)	​
Acquisition/integration costs	​	​	(3)	​	​	—	​	​	(4)	​
Brazil tax matter (b)	​	​	22	​	​	—	​	​	—	​
Charge for fair value markup of acquired inventory	​	​	—	​	​	—	​	​	(9)	​
Insurance settlement	​	​	—	​	​	—	​	​	9	​
Other	​	​	(3)	​	​	—	​	​	—	​
Total operating income	​	$	664	​	$	703	​	$	836	​

(a) The year ended December 31, 2019 includes $57 million of restructuring expenses, including $29 million of net restructuring related expenses as part of the Cost Smart Cost of sales program and $28 million of employee-related and other costs, including professional services, associated with the Cost Smart SG&A program. The year ended December 31, 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. The year ended December 31, 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.

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(b) During the year ended December 31, 2019, the Company recorded a $22 million pre-tax benefit for the favorable judgement received by Ingredion from the Federal Court of Appeals in Brazil related to certain indirect taxes collected in prior years.  As a result of the decision, the Company expects to be entitled to credits against its Brazilian federal tax payments in 2020 and future years.  The benefit recorded represents the Company's current estimate of the credits and interest due from the favorable decision in accordance with ASC 450, Contingencies. This benefit was offset by other adjusted charges during the period.

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​	​	​	​	​	​	​	​
​	​	As of December 31,					​
(in millions)	​	2019			2018		​
Total assets:	​	​	​	​	​	​	​
North America (a)	​	$	3,924	​	$	3,737	​
South America	​	​	774	​	​	711	​
Asia-Pacific	​	​	843	​	​	792	​
EMEA	​	​	499	​	​	488	​
Total	​	$	6,040	​	$	5,728	​

(a) For purposes of presentation, North America includes Corporate assets.

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​	​	​	​	​	​	​	​	​	​
(in millions)	​	2019			2018			2017
Depreciation and amortization:	​	​	​	​	​	​	​	​	​
North America (a)	​	$	146	​	$	180	​	$	140
South America	​	​	22	​	​	24	​	​	27
Asia-Pacific	​	​	37	​	​	27	​	​	25
EMEA	​	​	15	​	​	16	​	​	17
Total	​	$	220	​	$	247	​	$	209
Mechanical stores expense (b):	​	​	​	​	​	​	​	​	​
North America (a)	​	$	40	​	$	38	​	$	37
South America	​	​	10	​	​	11	​	​	12
Asia-Pacific	​	​	4	​	​	5	​	​	5
EMEA	​	​	3	​	​	3	​	​	3
Total	​	$	57	​	$	57	​	$	57
Capital expenditures and mechanical stores purchases:	​	​	​	​	​	​	​	​	​
North America (a)	​	$	226	​	$	232	​	$	180
South America	​	​	45	​	​	61	​	​	50
Asia-Pacific	​	​	40	​	​	39	​	​	51
EMEA	​	​	17	​	​	18	​	​	33
Total	​	$	328	​	$	350	​	$	314

(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.

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

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​	​	​	​	​	​	​	​	​	​	​
​	​	Net Sales								​
(in millions)	​	2019		​	2018		​	2017
U.S.	​	$	2,368	​	$	2,386	​	$	2,423	​
Mexico	​	​	1,075	​	​	1,067	​	​	1,011	​
Brazil	​	​	479	​	​	478	​	​	534	​
Canada	​	​	390	​	​	404	​	​	408	​
Korea	​	​	270	​	​	296	​	​	285	​
Others	​	​	1,627	​	​	1,658	​	​	1,583	​
Total	​	$	6,209	​	$	6,289	​	$	6,244	​

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

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​	​	​	​	​	​	​
​	​	Long-lived Assets
(in millions)		2019			2018
U.S.	​	$	1,239	​	$	1,004
Mexico	​	​	343	​	​	318
Brazil	​	​	205	​	​	207
Canada	​	​	187	​	​	165
Thailand	​	​	156	​	​	137
Germany	​	​	129	​	​	129
Korea	​	​	110	​	​	110
Others	​	​	260	​	​	259
Total	​	$	2,629	​	$	2,329

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- References

No definition available.

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- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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