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 transportation, consumables, building and construction, animal nutrition, crop protection, energy, personal and home care, and other markets.

The products the Company manufactures in the coatings and inks additives product line can be broadly classified as polymers and additives and solvents and include specialty coalescents, specialty solvents, paint additives, and specialty polymers. The adhesives resins product line consists of hydrocarbon and rosin resins. The tire additives product line includes insoluble sulfur rubber additives, antidegradant rubber additives, and performance resins. The care chemicals 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 heat transfer and aviation fluids products. The animal nutrition business consists of formic acid-based solutions product lines. The crop protection business consists of metam-based soil fumigants, thiram and ziram-based fungicides, and plant growth regulator products.



	Percentage of Total Segment Sales
Product Lines	2017	2016	2015
Coatings and Inks Additives	23%	24%	24%
Adhesives Resins	18%	21%	21%
Tire Additives	17%	17%	17%
Care Chemicals	17%	15%	15%
Specialty Fluids	13%	11%	11%
Animal Nutrition and Crop Protection	12%	12%	12%
Total	100%	100%	100%

Advanced Materials Segment

In the AM segment, the Company produces and markets 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.

The specialty plastics product line consists of two primary products: copolyesters and cellulose esters. The advanced interlayers product line includes polyvinyl butyral sheet and specialty polyvinyl butyral intermediates. The performance films product line primarily consists of window film and protective film products for aftermarket applied films.



	Percentage of Total Segment Sales
Product Lines	2017	2016	2015
Specialty Plastics	51%	50%	51%
Advanced Interlayers	33%	34%	33%
Performance Films	16%	16%	16%
Total	100%	100%	100%

Chemical Intermediates Segment

The CI segment leverages large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support the Company's specialty operating segments with advantaged cost positions. The CI segment sells excess intermediates beyond the Company's internal specialty needs into markets such as industrial chemicals and processing, building and construction, health and wellness, and agrochemicals.

In the intermediates product line, the Company produces olefin derivatives, acetyl derivatives, ethylene, and commodity solvents. The plasticizers product line consists of a unique set of primary non-phthalate and phthalate plasticizers and a range of niche non-phthalate plasticizers. The functional amines product lines include methylamines and salts, and higher amines and solvents.



	Percentage of Total Segment Sales
Product Lines	2017	2016	2015
Intermediates	64%	65%	65%
Plasticizers	19%	20%	20%
Functional Amines	17%	15%	15%
Total	100%	100%	100%

Fibers Segment

In the Fibers segment, Eastman manufactures and sells cellulose acetate tow for use in filtration media, primarily cigarette filters. The acetyl chemicals product line consists of triacetin, cellulose acetate flake, and acetyl raw materials for other acetate fiber producers. The acetate yarn product line consists of natural (undyed) acetate and polyester yarn and solution-dyed acetate yarn for use in apparel, home furnishings, and industrial fabrics.



	Percentage of Total Segment Sales
Product Lines	2017	2016	2015
Acetate Tow	77%	80%	78%
Acetyl Chemical Products	15%	13%	14%
Acetate Yarn	8%	7%	8%
Total	100%	100%	100%

Other

The Company continues to explore and invest in R&D initiatives such as high performance materials and advanced cellulosics that are aligned with disruptive macro trends such as health and wellness, natural resource efficiency, an increasing middle class in emerging economies, and feeding a growing population. 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)	2017		2016		2015
Sales by Segment
Additives & Functional Products	$	3,343	$	2,979	$	3,159
Advanced Materials	2,572		2,457		2,414
Chemical Intermediates	2,728		2,534		2,811
Fibers	852		992		1,219
Total Sales by Operating Segment	$	9,495	$	8,962	$	9,603
Other	54		46		45
Total Sales	$	9,549	$	9,008	$	9,648



	For years ended December 31,
(Dollars in millions)	2017			2016			2015
Operating Earnings (Loss)
Additives & Functional Products	$	646		$	601		$	660
Advanced Materials	482			471			384
Chemical Intermediates	255			171			294
Fibers	175			310			292
Total Operating Earnings by Operating Segment	1,558			1,553			1,630
Other
Growth initiatives and businesses not allocated to operating segments	(114		)	(82		)	(87		)
Pension and other postretirement benefit plans income (expense), net not allocated to operating segments	93			(44		)	(76		)
Restructuring and acquisition integration and transaction costs	(5		)	(44		)	(83		)
Total Operating Earnings	$	1,532		$	1,383		$	1,384



	December 31,
(Dollars in millions)	2017		2016
Assets by Segment ⁽¹⁾
Additives & Functional Products	$	6,648	$	6,255
Advanced Materials	4,379		4,247
Chemical Intermediates	3,000		2,927
Fibers	929		920
Total Assets by Operating Segment	14,956		14,349
Corporate Assets	1,043		1,108
Total Assets	$	15,999	$	15,457


⁽¹⁾	The chief operating decision maker holds operating segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets. Segment asset balances for shared fixed assets within the CI and Fibers segments as of December 31, 2016 have been reclassified to conform to current period allocation methodology.



	For years ended December 31,
(Dollars in millions)	2017		2016		2015
Depreciation and Amortization Expense by Segment
Additives & Functional Products	$	213	$	208	$	203
Advanced Materials	164		160		161
Chemical Intermediates	148		157		149
Fibers	58		51		55
Total Depreciation and Amortization Expense by Operating Segment	583		576		568
Other	4		4		3
Total Depreciation and Amortization Expense	$	587	$	580	$	571



	For years ended December 31,
(Dollars in millions)	2017		2016		2015
Capital Expenditures by Segment
Additives & Functional Products	$	229	$	212	$	227
Advanced Materials	248		244		225
Chemical Intermediates	116		128		139
Fibers	52		38		57
Total Capital Expenditures by Operating Segment	645		622		648
Other	4		4		4
Total Capital Expenditures	$	649	$	626	$	652

Sales are attributed to geographic areas based on customer location and long-lived assets are attributed to geographic areas based on asset location.



(Dollars in millions)	For years ended December 31,
Geographic Information	2017		2016		2015
Sales
United States	$	3,999	$	3,803	$	4,096
All foreign countries	5,550		5,205		5,552
Total	$	9,549	$	9,008	$	9,648


	December 31,
	2017		2016		2015
Net properties
United States	$	4,203	$	4,066	$	3,939
All foreign countries	1,404		1,210		1,191
Total	$	5,607	$	5,276	$	5,130