XML 49 R25.htm IDEA: XBRL DOCUMENT
v3.6.0.2

SEGMENT INFORMATION | 12 Months Ended
--- | ---
Dec. 31, 2016
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company's products and operations are managed and reported in four operating segments: Additives & Functional Products ("AFP"), Advanced Materials ("AM"), Chemical Intermediates ("CI"), and Fibers. Additives & Functional Products Segment In the AFP segment, the Company manufactures chemicals for products in the coatings, tires, consumables, building and construction, industrial applications including solar energy markets, animal nutrition, care chemicals, crop protection, and energy markets.
| Percentage of Total Segment Sales
Product Lines | 2016 | 2015 | 2014
Coatings and Inks Additives | 24% | 24% | 31%
Adhesives Resins | 21% | 21% | 27%
Tire Additives | 17% | 17% | 22%
Other | 38% | 38% | 20%
Total | 100% | 100% | 100%
The products Eastman manufactures in the coatings and inks additives product line can be broadly classified as polymers, which include cellulosics, Eastman Tetrashield™ performance polyester resins, and other polyester-based specialty polymers and paint additives; and solvents, which include specialty coalescents, ketones, esters, glycol ethers, and alcohol solvents. The adhesives resins product line consists of hydrocarbon resins such as Regalite® and Eastotac®; non-hydrogenated hydrocarbons resins such as Piccotac®; and polymers such as Eastoflex®. The tire additives product line include insoluble sulfur products, which are vulcanizing agents principally marketed under the Crystex® brand; antidegradants, principally marketed under the Santoflex® brand; and performance resins marketed under the ImperaTM brand. The care chemicals additives business consists of amine-derivative based building blocks for the production of flocculants and intermediates for surfactants. 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. The animal nutrition business consists of formic acid based solutions product lines. The crop protection business consists of alkylamine derivatives product lines. Advanced Materials Segment 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 markets.
| Percentage of Total Segment Sales
Product Lines | 2016 | 2015 | 2014
Specialty Plastics | 50% | 51% | 54%
Advanced Interlayers | 34% | 33% | 34%
Performance Films | 16% | 16% | 12%
Total | 100% | 100% | 100%
The specialty plastics product line consists of two primary products: copolyesters and cellulose esters. The advanced 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. Chemical Intermediates Segment The CI segment leverages large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support our specialty operating segments with advantaged cost positions. The CI segment sells excess intermediates beyond our specialty needs for use in markets such as industrial chemicals and processing, building and construction, health and wellness, and agrochemicals. Certain products are also used internally by other operating segments of the Company.
| Percentage of Total Segment Sales
Product Lines | 2016 | 2015 | 2014
Intermediates | 65% | 65% | 78%
Plasticizers | 20% | 20% | 21%
Functional Amines | 15% | 15% | 1%
Total | 100% | 100% | 100%
In the intermediates product line, the Company produces oxo alcohols and derivatives, acetic acid and derivatives, acetic anhydride, ethylene, glycol ethers, and esters. 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 Eastman Effusion™. The functional amines product lines include methylamines and salts, and higher amines and solvents. Fibers Segment In the Fibers segment, Eastman manufactures and sells Estron® acetate tow and Estrobond® triacetin plasticizers for use primarily in the 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.
| Percentage of Total Segment Sales
Product Lines | 2016 | 2015 | 2014
Acetate Tow | 80% | 78% | 79%
Acetate Yarn and Acetyl Chemical Products | 20% | 22% | 21%
Total | 100% | 100% | 100%
Other 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 and advanced cellulosics. 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. 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).
| For years ended December 31,
(Dollars in millions) | 2016 |  | 2015 |  | 2014
Sales by Segment |  |  |  |  |
Additives & Functional Products | $ | 2,979 |  |  | $ | 3,159 |  |  | $ | 2,640 |
Advanced Materials | 2,457 |  |  | 2,414 |  |  | 2,378 |
Chemical Intermediates | 2,534 |  |  | 2,811 |  |  | 3,034 |
Fibers | 992 |  |  | 1,219 |  |  | 1,457 |
Total Sales by Operating Segment | $ | 8,962 |  |  | $ | 9,603 |  |  | $ | 9,509 |
Other | 46 |  |  | 45 |  |  | 18 |
Total Sales | $ | 9,008 |  |  | $ | 9,648 |  |  | $ | 9,527 |
| For years ended December 31,
(Dollars in millions) | 2016 |  | 2015 |  | 2014
Operating Earnings (Loss) |  |  |  |  |
Additives & Functional Products | $ | 601 |  |  | $ | 660 |  |  | $ | 462 |
Advanced Materials | 471 |  |  | 384 |  |  | 276 |
Chemical Intermediates | 171 |  |  | 294 |  |  | 352 |
Fibers | 310 |  |  | 292 |  |  | 474 |
Total Operating Earnings by Operating Segment | 1,553 |  |  | 1,630 |  |  | 1,564 |
Other |  |  |  |  |
Growth initiatives and businesses not allocated to operating segments | (82 | ) |  | (87 | ) |  | (58 | )
Pension and other postretirement benefits expenses, net not allocated to operating segments | (44 | ) |  | (76 | ) |  | (293 | )
Restructuring and acquisition integration and transaction costs | (44 | ) |  | (83 | ) |  | (51 | )
Total Operating Earnings | $ | 1,383 |  |  | $ | 1,384 |  |  | $ | 1,162 |
| December 31,
(Dollars in millions) | 2016 |  | 2015
Assets by Segment (1) |  |  |
Additives & Functional Products | $ | 6,255 |  |  | $ | 6,370 |
Advanced Materials | 4,247 |  |  | 4,227 |
Chemical Intermediates | 3,084 |  |  | 2,930 |
Fibers | 763 |  |  | 969 |
Total Assets by Operating Segment | 14,349 |  |  | 14,496 |
Corporate Assets | 1,108 |  |  | 1,084 |
Total Assets | $ | 15,457 |  |  | $ | 15,580 |
(1) | The chief operating decision maker holds operating segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets.
| For years ended December 31,
(Dollars in millions) | 2016 |  | 2015 |  | 2014
Depreciation and Amortization Expense by Segment |  |  |  |  |
Additives & Functional Products | $ | 208 |  |  | $ | 203 |  |  | $ | 140 |
Advanced Materials | 160 |  |  | 161 |  |  | 143 |
Chemical Intermediates | 157 |  |  | 149 |  |  | 99 |
Fibers | 51 |  |  | 55 |  |  | 66 |
Total Depreciation and Amortization Expense by Operating Segment | 576 |  |  | 568 |  |  | 448 |
Other | 4 |  |  | 3 |  |  | 2 |
Total Depreciation and Amortization Expense | $ | 580 |  |  | $ | 571 |  |  | $ | 450 |
| For years ended December 31,
(Dollars in millions) | 2016 |  | 2015 |  | 2014
Capital Expenditures by Segment |  |  |  |  |
Additives & Functional Products | $ | 212 |  |  | $ | 227 |  |  | $ | 225 |
Advanced Materials | 244 |  |  | 225 |  |  | 176 |
Chemical Intermediates | 128 |  |  | 139 |  |  | 131 |
Fibers | 38 |  |  | 57 |  |  | 53 |
Total Capital Expenditures by Operating Segment | 622 |  |  | 648 |  |  | 585 |
Other | 4 |  |  | 4 |  |  | 8 |
Total Capital Expenditures | $ | 626 |  |  | $ | 652 |  |  | $ | 593 |
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 | 2016 |  | 2015 |  | 2014
Sales |  |  |  |  |
United States | $ | 3,803 |  |  | $ | 4,096 |  |  | $ | 4,162 |
All foreign countries | 5,205 |  |  | 5,552 |  |  | 5,365 |
Total | $ | 9,008 |  |  | $ | 9,648 |  |  | $ | 9,527 |
| December 31,
| 2016 |  | 2015 |  | 2014
Net properties |  |  |  |  |
United States | $ | 4,066 |  |  | $ | 3,939 |  |  | $ | 3,753 |
All foreign countries | 1,210 |  |  | 1,191 |  |  | 1,334 |
Total | $ | 5,276 |  |  | $ | 5,130 |  |  | $ | 5,087 |

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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration