SEGMENT AND REGIONAL SALES INFORMATION

9 Months Ended

Sep. 30, 2019

SEGMENT AND REGIONAL SALES 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. The economic factors that impact the nature, amount, timing, and uncertainty of revenue and cash flows vary between the Company's business operating segments and the geographical regions in which they serve. For disaggregation of revenue by major product lines and regions for each business operating segment, see Note 19, "Segment Information", to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K. For additional financial information for each segment, see Part I, Item 1, "Business - Business Segments", in the Company's 2018 Annual Report on Form 10-K.

The timing of Eastman's customer billings does not always match the timing of revenue recognition. When the Company is entitled to bill a customer in advance of the recognition of revenue, a contract liability is recognized. When the Company is not entitled to bill a customer until a period after the related recognition of revenue, a contract asset is recognized. Contract assets represent the Company's right to consideration for the exchange of goods under a contract, but which are not yet billable to a customer for consignment inventory or pursuant to certain shipping terms. Contract liabilities were not material as of September 30, 2019 or December 31, 2018. Contract assets were $58 million and $62 million as of September 30, 2019 and December 31, 2018, respectively, and are included as a component of "Miscellaneous receivables" in the Unaudited Consolidated Statements of Financial Position.



(Dollars in millions)	Third Quarter				First Nine Months
Sales by Segment	2019		2018		2019		2018
Additives & Functional Products	$	832	$	915	$	2,510	$	2,796
Advanced Materials	697		709		2,050		2,131
Chemical Intermediates	579		703		1,865		2,142
Fibers	217		220		643		706
Total Sales	$	2,325	$	2,547	$	7,068	$	7,775



(Dollars in millions)	Third Quarter						First Nine Months
Earnings Before Interest and Taxes by Segment	2019			2018			2019			2018
Additives & Functional Products	$	144		$	186		$	437		$	554
Advanced Materials	159			153			406			438
Chemical Intermediates	34			109			170			264
Fibers	51			84			144			210
Total Earnings Before Interest and Taxes by Operating Segment	388			532			1,157			1,466
Other
Growth initiatives and businesses not allocated to operating segments	(26		)	(26		)	(78		)	(79		)
Pension and other postretirement benefits income (expense), net not allocated to operating segments	12			20			35			61
Asset impairments and restructuring charges, net	(2		)	—			(48		)	(6		)
Other income (charges), net not allocated to operating segments	(5		)	(9		)	(8		)	(25		)
Total Earnings Before Interest and Taxes	$	367		$	517		$	1,058		$	1,417



(Dollars in millions)	September 30,		December 31,
Assets by Segment ⁽¹⁾	2019		2018
Additives & Functional Products	$	6,491	$	6,545
Advanced Materials	4,478		4,456
Chemical Intermediates	2,848		2,934
Fibers	1,030		978
Total Assets by Operating Segment	14,847		14,913
Corporate Assets	1,290		1,082
Total Assets	$	16,137	$	15,995


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



(Dollars in millions)	Third Quarter				First Nine Months
Sales by Customer Location	2019		2018		2019		2018
United States and Canada	$	966	$	1,083	$	2,961	$	3,291
Asia Pacific	602		665		1,729		1,946
Europe, Middle East, and Africa	611		649		1,949		2,101
Latin America	146		150		429		437
Total Sales	$	2,325	$	2,547	$	7,068	$	7,775