XML 46 R25.htm IDEA: XBRL DOCUMENT
v3.3.1.900

SEGMENT INFORMATION | 12 Months Ended
--- | ---
Dec. 31, 2015
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION For the periods reported, the Company's products and operations were managed and reported in five reporting segments: Additives & Functional Products ("AFP"), Adhesives & Plasticizers ("A&P"), Advanced Materials ("AM"), Fibers, and Specialty Fluids & Intermediates ("SFI"). In the AFP segment, the Company manufactures chemicals for products in the coatings, tires, consumables, animal nutrition, crop protection, and energy markets. The products Eastman manufactures for the coatings industry can be broadly classified as solvents, which include specialty coalescents and ketones and esters, glycol ethers, and alcohol solvents; and polymers, which include cellulose and polyester-based specialty polymers and paint additives. Products for the tires industry are classified into three main product groups: insoluble sulfur products, which are vulcanizing agents principally marketed under the Crystex® brand; antidegradants, principally marketed under the Santoflex® brand; and hydrocarbon resins. The specialty amines business includes product lines that consist of specialty intermediates, performance products, and formic acid. The crop protection business consists of alkylamine derivatives product lines. Coatings and other formulated products sales accounted for 46 percent, 66 percent, and 66 percent of the AFP segment's total sales for 2015, 2014, and 2013, respectively. Tires sales accounted for 22 percent, 31 percent, and 34 percent of the AFP segment's total sales for 2015, 2014, and 2013, respectively. The specialty amines and crop protection businesses are included in 2015 and December 2014 sales revenue and account for approximately 32 percent and 3 percent of total sales in 2015 and 2014, respectively. In the adhesives resins and plasticizers businesses, the Company manufactures products which are sold into the consumables, building and construction, health and wellness, industrial chemicals and processing, and durable goods markets. The adhesives resins product line consists of hydrocarbon resins such as Regalite® and Eastotac®; non-hydrogenated hydrocarbons resins such as Piccotac®; and rosins such as Eastoflex®. The plasticizers product line consists of a unique set of primary non-phthalate plasticizers such as Eastman 168®, and a range of niche non-phthalate plasticizers such as Benzoflex®, Eastman TXIB®, and Effusion™. Adhesives resins accounted for 54 percent, 53 percent, and 52 percent of the A&P segment's total sales for 2015, 2014, and 2013, respectively. Plasticizers accounted for 46 percent, 47 percent, and 48 percent of the A&P segment's total sales for 2015, 2014, and 2013, respectively. In the AM segment, the Company produces and markets its polymers, films, and plastics with differentiated performance properties for value-added end uses in transportation, consumables, building and construction, durable goods, and health and wellness products. The specialty plastics product line consists of two primary products: specialty copolyesters and cellulose esters. The interlayers product line includes specialty intermediate polyvinyl butyral ("PVB") sheet and resins. PVB is a specialty resin used in the production of laminated safety glass sheet used in automotive and architectural applications. The performance films product line primarily consists of window film products, which are aftermarket applied films to enhance the characteristics and functional performance of automotive and architectural glass. Eastman's specialty plastics product line accounted for 51 percent, 54 percent, and 53 percent of the AM segment's total sales for 2015, 2014, and 2013, respectively. The interlayers product line accounted for 33 percent, 34 percent, and 34 percent of the AM segment's total sales for 2015, 2014, and 2013, respectively. The performance films product line accounted for 16 percent, 12 percent, and 13 percent of the AM segment's total sales for 2015, 2014, and 2013, respectively. The performance films product line includes Commonwealth in 2015 and December 2014 total sales. In the Fibers segment, the Company manufactures Estron® acetate tow and Estrobond® triacetin plasticizers for use primarily in manufacture of cigarette filters; Estron® natural (undyed) and Chromspun® solution-dyed acetate yarns for use in apparel, home furnishings, and industrial fabrics; and cellulose acetate flake and acetyl raw materials for other acetate fiber producers. Acetate tow accounted for 78 percent, 79 percent, and 83 percent of the Fibers segment total sales revenue in 2015, 2014, and 2013, respectively, with the remainder of sales from other product lines, including acetate yarn and acetyl chemical products. The SFI segment leverages large scale and vertical integration from the acetyl, olefins, and alkylamine streams and proprietary manufacturing technology for specialty fluids to manufacture diversified products that are sold externally for use in markets such as industrial chemicals and processing, building and construction, health and wellness, and agrochemicals. Certain SFI products are also used internally by other segments of the Company. In the chemical intermediates product line, the Company produces oxo alcohols and derivatives, acetic acid and derivatives and acetic anhydride. In the other intermediate product line, the Company produces olefin, chemical intermediates, and polymer intermediates. The functional amines product lines include methylamines and salts, and higher amines and solvents. In the specialty fluids product line, the Company produces Therminol® heat transfer fluids, Eastman Turbo Oils, Eastman Skydrol® aviation hydraulic fluids, and Eastman SkyKleen® aviation solvents. Chemical intermediates accounted for 42 percent, 50 percent, and 48 percent of the SFI segment's total sales for 2015, 2014, and 2013, respectively. Sales for other intermediate products accounted for 27 percent, 35 percent, and 39 percent of the SFI segment's total sales for 2015, 2014, and 2013, respectively. The functional amines business is included in 2015 and December 2014 sales revenue and account for approximately 18 percent and 1 percent of total sales in 2015 and 2014, respectively. Specialty fluids accounted for 13 percent, 14 percent, and 13 percent of the SFI segment's total sales for 2015, 2014, and 2013, respectively. The Company continues to explore and invest in R&D initiatives that are aligned with macro trends in sustainability, consumerism, and energy efficiency such as high performance materials, advanced cellulosics, and reduced environmental impact. An example of such an initiative is the Eastman microfiber technology platform which leverages the Company's core competency in polyesters, spinning capability, and in-house application expertise, for use in a wide range of applications including liquid and air filtration, high strength packaging in nonwovens, and performance apparel in textiles. The acquisition of Knowlton accelerates the innovation cycle for the Eastman microfibers technology platform. Sales revenue and expense for the Eastman microfiber technology platform growth initiative are shown in the tables below as "other" sales revenue and operating loss. R&D, pension and other postretirement benefits, and other expenses and income not identifiable to an operating segment are shown in the tables below as "other" operating earnings (loss). Included in 2015 and 2014 "other" was sales revenue from the acquired Knowlton business, part of the Eastman microfibers technology platform. Included in 2013 "other" sales revenue were the Perennial Wood™ growth initiative and the Photovoltaics product line acquired from Solutia in 2012. There was no sales revenue related to Perennial Wood™ included in 2014 as a result of decisions made by management in 2013 not to continue its Perennial Wood™ growth initiative.
| For years ended December 31,
(Dollars in millions) | 2015 |  | 2014 |  | 2013
Sales by Segment |  |  |  |  |
Additives & Functional Products | $ | 2,368 |  |  | $ | 1,821 |  |  | $ | 1,719 |
Adhesives & Plasticizers | 1,214 |  |  | 1,363 |  |  | 1,326 |
Advanced Materials | 2,414 |  |  | 2,378 |  |  | 2,349 |
Fibers | 1,219 |  |  | 1,457 |  |  | 1,441 |
Specialty Fluids & Intermediates | 2,388 |  |  | 2,490 |  |  | 2,497 |
Total Sales by Segment | $ | 9,603 |  |  | $ | 9,509 |  |  | $ | 9,332 |
Other | 45 |  |  | 18 |  |  | 18 |
Total Sales | $ | 9,648 |  |  | $ | 9,527 |  |  | $ | 9,350 |
| For years ended December 31,
(Dollars in millions) | 2015 |  | 2014 |  | 2013
Operating Earnings (Loss) |  |  |  |  |
Additives & Functional Products | $ | 462 |  |  | $ | 329 |  |  | $ | 405 |
Adhesives & Plasticizers | 239 |  |  | 196 |  |  | 172 |
Advanced Materials | 384 |  |  | 276 |  |  | 257 |
Fibers | 292 |  |  | 474 |  |  | 462 |
Specialty Fluids & Intermediates | 253 |  |  | 289 |  |  | 363 |
Total Operating Earnings by Segment | 1,630 |  |  | 1,564 |  |  | 1,659 |
Other |  |  |  |  |
Growth initiatives and businesses not allocated to segments | (87 | ) |  | (58 | ) |  | (132 | )
Pension and other postretirement benefit income (expense), net not allocated to operating segments | (76 | ) |  | (293 | ) |  | 394 |
Acquisition integration, transaction, and restructuring costs | (83 | ) |  | (51 | ) |  | (59 | )
Total Operating Earnings | $ | 1,384 |  |  | $ | 1,162 |  |  | $ | 1,862 |
| December 31,
(Dollars in millions) | 2015 |  | 2014
Assets by Segment (1) |  |  |
Additives & Functional Products | $ | 4,812 |  |  | $ | 4,900 |
Adhesives & Plasticizers | 902 |  |  | 1,011 |
Advanced Materials | 4,227 |  |  | 4,235 |
Fibers | 969 |  |  | 986 |
Specialty Fluids & Intermediates | 3,586 |  |  | 3,710 |
Total Assets by Segment | 14,496 |  |  | 14,842 |
Corporate Assets | 1,115 |  |  | 1,230 |
Total Assets | $ | 15,611 |  |  | $ | 16,072 |
(1) | The chief operating decision maker holds segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets.
| For years ended December 31,
(Dollars in millions) | 2015 |  | 2014 |  | 2013
Depreciation and Amortization Expense by Segment |  |  |  |  |
Additives & Functional Products | $ | 163 |  |  | $ | 104 |  |  | $ | 95 |
Adhesives & Plasticizers | 43 |  |  | 43 |  |  | 45 |
Advanced Materials | 161 |  |  | 143 |  |  | 144 |
Fibers | 55 |  |  | 66 |  |  | 65 |
Specialty Fluids & Intermediates | 146 |  |  | 92 |  |  | 80 |
Total Depreciation and Amortization Expense by Segment | 568 |  |  | 448 |  |  | 429 |
Other | 3 |  |  | 2 |  |  | 4 |
Total Depreciation and Amortization Expense | $ | 571 |  |  | $ | 450 |  |  | $ | 433 |
| For years ended December 31,
(Dollars in millions) | 2015 |  | 2014 |  | 2013
Capital Expenditures by Segment |  |  |  |  |
Additives & Functional Products | $ | 171 |  |  | $ | 111 |  |  | $ | 74 |
Adhesives & Plasticizers | 43 |  |  | 57 |  |  | 56 |
Advanced Materials | 225 |  |  | 176 |  |  | 170 |
Fibers | 57 |  |  | 53 |  |  | 65 |
Specialty Fluids & Intermediates | 152 |  |  | 188 |  |  | 113 |
Total Capital Expenditures by Segment | 648 |  |  | 585 |  |  | 478 |
Other | 4 |  |  | 8 |  |  | 5 |
Total Capital Expenditures | $ | 652 |  |  | $ | 593 |  |  | $ | 483 |
Sales are attributed to geographic areas based on customer location; long-lived assets are attributed to geographic areas based on asset location.
(Dollars in millions) | For years ended December 31,
Geographic Information | 2015 |  | 2014 |  | 2013
Sales |  |  |  |  |
United States | $ | 4,096 |  |  | $ | 4,162 |  |  | $ | 4,140 |
All foreign countries | 5,552 |  |  | 5,365 |  |  | 5,210 |
Total | $ | 9,648 |  |  | $ | 9,527 |  |  | $ | 9,350 |
| December 31,
| 2015 |  | 2014 |  | 2013
Net properties |  |  |  |  |  |  |  |
United States | $ | 3,939 |  |  | $ | 3,753 |  |  | $ | 3,247 |
All foreign countries | 1,191 |  |  | 1,334 |  |  | 1,043 |
Total | $ | 5,130 |  |  | $ | 5,087 |  |  | $ | 4,290 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration