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