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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2018
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. 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, products previously reported in the CI operating segment are reported in the AFP operating segment; and
• | Sales revenue and innovation costs from the nonwovens and textiles innovation products previously reported in "Other" are reported in the Fibers operating segment due to accelerating commercial progress of growth initiatives.
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 organic 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 | 2018 | 2017 | 2016
Coatings and Inks Additives | 23% | 23% | 24%
Adhesives Resins | 16% | 18% | 21%
Tire Additives | 17% | 17% | 17%
Care Chemicals | 17% | 17% | 15%
Specialty Fluids | 13% | 13% | 11%
Animal Nutrition and Crop Protection | 14% | 12% | 12%
Total | 100% | 100% | 100%
| Percentage of Total Segment Sales
Sales by Customer Location | 2018 | 2017 | 2016
United States and Canada | 36% | 35% | 37%
Asia Pacific | 24% | 23% | 21%
Europe, Middle East, and Africa | 34% | 36% | 35%
Latin America | 6% | 6% | 7%
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 | 2018 | 2017 | 2016
Specialty Plastics | 49% | 51% | 50%
Advanced Interlayers | 33% | 33% | 34%
Performance Films | 18% | 16% | 16%
Total | 100% | 100% | 100%
| Percentage of Total Segment Sales
Sales by Customer Location | 2018 | 2017 | 2016
United States and Canada | 35% | 36% | 37%
Asia Pacific | 33% | 33% | 32%
Europe, Middle East, and Africa | 27% | 26% | 26%
Latin America | 5% | 5% | 5%
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 | 2018 | 2017 | 2016
Intermediates | 60% | 64% | 65%
Plasticizers | 20% | 19% | 20%
Functional Amines | 20% | 17% | 15%
Total | 100% | 100% | 100%
| Percentage of Total Segment Sales
Sales by Customer Location | 2018 | 2017 | 2016
United States and Canada | 64% | 68% | 69%
Asia Pacific | 15% | 14% | 12%
Europe, Middle East, and Africa | 15% | 12% | 13%
Latin America | 6% | 6% | 6%
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. The nonwovens product line consists primarily of the nonwovens innovation products previously reported in "Other".
| Percentage of Total Segment Sales
Product Lines | 2018 | 2017 | 2016
Acetate Tow | 69% | 77% | 80%
Acetyl Chemical Products | 15% | 15% | 13%
Acetate Yarn | 10% | 8% | 7%
Nonwovens | 6% | —% | —%
Total | 100% | 100% | 100%
| Percentage of Total Segment Sales
Sales by Customer Location | 2018 | 2017 | 2016
United States and Canada | 26% | 22% | 21%
Asia Pacific | 33% | 37% | 44%
Europe, Middle East, and Africa | 37% | 37% | 29%
Latin America | 4% | 4% | 6%
Total | 100% | 100% | 100%
Other Sales revenue in the table below for "Other" in 2017 and 2016 is primarily sales from the nonwovens innovation products. Beginning first quarter 2018, sales revenue and innovation costs from the nonwovens and textiles innovation products previously reported in "Other" are reported in the Fibers operating segment due to accelerating commercial progress of growth initiatives.
| For years ended December 31,
(Dollars in millions) | 2018 |  | 2017 |  | 2016
Sales by Segment |  |  |  |  |
Additives & Functional Products | $ | 3,647 |  |  | $ | 3,343 |  |  | $ | 2,979 |
Advanced Materials | 2,755 |  |  | 2,572 |  |  | 2,457 |
Chemical Intermediates | 2,831 |  |  | 2,728 |  |  | 2,534 |
Fibers | 918 |  |  | 852 |  |  | 992 |
Total Sales by Operating Segment | $ | 10,151 |  |  | $ | 9,495 |  |  | $ | 8,962 |
Other | — |  |  | 54 |  |  | 46 |
Total Sales | $ | 10,151 |  |  | $ | 9,549 |  |  | $ | 9,008 |
| For years ended December 31,
(Dollars in millions) | 2018 |  | 2017 |  | 2016
Earnings Before Interest and Taxes by Segment |  |  |  |  |
Additives & Functional Products | $ | 639 |  |  | $ | 653 |  |  | $ | 607 |
Advanced Materials | 509 |  |  | 483 |  |  | 472 |
Chemical Intermediates | 308 |  |  | 255 |  |  | 171 |
Fibers | 257 |  |  | 181 |  |  | 331 |
Total EBIT by Operating Segment | 1,713 |  |  | 1,572 |  |  | 1,581 |
Other |  |  |  |  |
Growth initiatives and businesses not allocated to operating segments | (114 | ) |  | (114 | ) |  | (82 | )
Pension and other postretirement benefit plans income (expense), net not allocated to operating segments | (17 | ) |  | 93 |  |  | (44 | )
Restructuring and acquisition integration and transaction costs | (6 | ) |  | (5 | ) |  | (44 | )
Other income (charges), net not allocated to operating segments | (24 | ) |  | (16 | ) |  | (22 | )
Total EBIT | $ | 1,552 |  |  | $ | 1,530 |  |  | $ | 1,389 |
| December 31,
(Dollars in millions) | 2018 |  | 2017
Assets by Segment (1) |  |  |
Additives & Functional Products | $ | 6,545 |  |  | $ | 6,648 |
Advanced Materials | 4,456 |  |  | 4,379 |
Chemical Intermediates | 2,934 |  |  | 3,000 |
Fibers | 978 |  |  | 929 |
Total Assets by Operating Segment | 14,913 |  |  | 14,956 |
Corporate Assets | 1,082 |  |  | 1,043 |
Total Assets | $ | 15,995 |  |  | $ | 15,999 |
(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) | 2018 |  | 2017 |  | 2016
Depreciation and Amortization Expense by Segment |  |  |  |  |
Additives & Functional Products | $ | 219 |  |  | $ | 213 |  |  | $ | 208 |
Advanced Materials | 169 |  |  | 164 |  |  | 160 |
Chemical Intermediates | 151 |  |  | 148 |  |  | 157 |
Fibers | 64 |  |  | 58 |  |  | 51 |
Total Depreciation and Amortization Expense by Operating Segment | 603 |  |  | 583 |  |  | 576 |
Other | 1 |  |  | 4 |  |  | 4 |
Total Depreciation and Amortization Expense | $ | 604 |  |  | $ | 587 |  |  | $ | 580 |
| For years ended December 31,
(Dollars in millions) | 2018 |  | 2017 |  | 2016
Capital Expenditures by Segment |  |  |  |  |
Additives & Functional Products | $ | 150 |  |  | $ | 229 |  |  | $ | 212 |
Advanced Materials | 187 |  |  | 248 |  |  | 244 |
Chemical Intermediates | 137 |  |  | 116 |  |  | 128 |
Fibers | 50 |  |  | 52 |  |  | 38 |
Total Capital Expenditures by Operating Segment | 524 |  |  | 645 |  |  | 622 |
Other | 4 |  |  | 4 |  |  | 4 |
Total Capital Expenditures | $ | 528 |  |  | $ | 649 |  |  | $ | 626 |
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 | 2018 |  | 2017 |  | 2016
Sales |  |  |  |  |
United States | $ | 4,118 |  |  | $ | 3,999 |  |  | $ | 3,803 |
All foreign countries | 6,033 |  |  | 5,550 |  |  | 5,205 |
Total | $ | 10,151 |  |  | $ | 9,549 |  |  | $ | 9,008 |
| December 31,
| 2018 |  | 2017 |  | 2016
Net properties |  |  |  |  |
United States | $ | 4,228 |  |  | $ | 4,203 |  |  | $ | 4,066 |
All foreign countries | 1,372 |  |  | 1,404 |  |  | 1,210 |
Total | $ | 5,600 |  |  | $ | 5,607 |  |  | $ | 5,276 |

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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