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