SEGMENT INFORMATION

Eastman's products and operations are managed and reported in four operating segments: Additives & Functional Products ("AFP"), Advanced Materials ("AM"), Chemical Intermediates ("CI"), and Fibers. Beginning January 1, 2018:


•	Eastman's primary measure of operating performance for all periods presented is EBIT on a consolidated and segment basis. Previously, the Company's primary measure of operating performance was operating earnings;


•	As a result of recent changes in the management of products and operations to better align resources for growth initiatives, certain products previously reported in the CI operating segment are reported in the AFP operating segment; and


•	Sales revenue and innovation costs from the textiles and nonwovens innovation platform products previously reported in "Other" are reported in the Fibers operating segment due to accelerating commercial progress of growth initiatives.

For additional financial and product information for each segment, see Part I, Item 1, "Business - Business Segments" and Part II, Item 8, Note 19, "Segment Information", in the Company's 2017 Annual Report on Form 10-K.



(Dollars in millions)	Second Quarter				First Six Months
Sales by Segment	2018		2017		2018		2017
Additives & Functional Products	$	942	$	830	$	1,881	$	1,603
Advanced Materials	729		657		1,422		1,291
Chemical Intermediates	709		703		1,439		1,373
Fibers	241		215		486		428
Total Sales by Operating Segment	2,621		2,405		5,228		4,695
Other	—		14		—		27
Total Sales	$	2,621	$	2,419	$	5,228	$	4,722



(Dollars in millions)	Second Quarter						First Six Months
Earnings Before Interest and Taxes by Segment	2018			2017			2018			2017
Additives & Functional Products	$	192		$	161		$	368		$	314
Advanced Materials	150			137			285			258
Chemical Intermediates	85			83			155			165
Fibers	83			56			126			108
Total Earnings Before Interest and Taxes by Operating Segment	510			437			934			845
Other
Growth initiatives and businesses not allocated to operating segments	(27		)	(32		)	(53		)	(60		)
Pension and other postretirement benefits income (expense), net not allocated to operating segments	20			18			41			36
Asset impairments and restructuring charges, net	(4		)	—			(6		)	—
Other income (charges), net not allocated to operating segments	(8		)	(3		)	(16		)	—
Total Earnings Before Interest and Taxes	$	491		$	420		$	900		$	821



(Dollars in millions)	June 30,		December 31,
Assets by Segment ⁽¹⁾	2018		2017
Additives & Functional Products	$	6,703	$	6,648
Advanced Materials	4,512		4,379
Chemical Intermediates	2,993		3,000
Fibers	1,004		929
Total Assets by Operating Segment	15,212		14,956
Corporate Assets	1,048		1,043
Total Assets	$	16,260	$	15,999


⁽¹⁾	Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets.



(Dollars in millions)	Second Quarter				First Six Months
Sales by Customer Location	2018		2017		2018		2017
United States and Canada	$	1,108	$	1,088	$	2,208	$	2,154
Asia Pacific	639		581		1,281		1,093
Europe, Middle East, and Africa	725		624		1,452		1,224
Latin America	149		126		287		251
Total Sales	$	2,621	$	2,419	$	5,228	$	4,722