SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2012



	For years ended December 31,
(Dollars in millions)	2012		2011		2010
Sales by Segment
Additives & Functional Products	$	1,332	$	1,067	$	931
Adhesives & Plasticizers	1,432		1,381		1,050
Advanced Materials	1,694		1,195		1,043
Fibers	1,315		1,279		1,142
Specialty Fluids & Intermediates	2,318		2,256		1,676
Total Sales by Segment	$	8,091	$	7,178	$	5,842
Other	11		—		—
Total Sales	$	8,102	$	7,178	$	5,842



	For years ended December 31,
(Dollars in millions)	2012			2011			2010
Operating Earnings (Loss)
Additives & Functional Products^{(1)(2)(3)(4)(5)}	$	285		$	215		$	204
Adhesives & Plasticizers⁽²⁾⁽⁵⁾	260			250			182
Advanced Materials^(1)(2)(3)(5)	84			125			103
Fibers⁽²⁾⁽⁵⁾	385			365			339
Specialty Fluids & Intermediates^{(1)(2)(3)(5)(6)}	288			204			170
Total Operating Earnings by Segment	1,302			1,159			998
Other⁽⁷⁾
Growth initiatives and businesses not allocated to segments⁽⁸⁾⁽⁹⁾	(132		)	(49		)	(65		)
Pension and OPEB costs not allocated to operating segments⁽¹⁰⁾	(294		)	(173		)	(89		)
Transaction, integration, and restructuring costs related to the acquisition of Solutia	(76		)	—			—
Total Operating Earnings	$	800		$	937		$	844


⁽¹⁾	Included in 2012 earnings are additional costs of $21 million, $41 million, and $17 million in the Additives & Functional Products, Advanced Materials, and Specialty Fluids & Intermediates segments, respectively, of acquired Solutia inventories. See Note 2, "Acquisitions and Investments in Joint Ventures".


⁽²⁾	Included in 2012 earnings are asset impairments and restructuring charges of $3 million, $3 million, $5 million, $3 million, and $6 million in the Additives & Functional Products, Adhesives & Plasticizers, Advanced Materials, Fibers, and Specialty Fluids & Intermediates segments, respectively, primarily due to a change in approach to address recently finalized boiler air emissions regulations.


⁽³⁾	Included in 2012 earnings are asset impairments and restructuring charges of $8 million, $24 million, and $3 million in the Additives & Functional Products, Advanced Materials, and Specialty Fluids & Intermediates segments, respectively, related to the termination of its operating agreement at the acquired Solutia manufacturing facility in Sao Jose Dos Campos, Brazil.


⁽⁴⁾	Additives & Functional Products includes asset impairments and restructuring charges of $6 million in 2012 related to the closure of production facility in China.


⁽⁵⁾	Included in 2010 earnings are restructuring charges of $4 million, $5 million, $5 million, $3 million, and $4 million in the Additives & Functional Products, Adhesives & Plasticizers, Advanced Materials, Fibers, and Specialty Fluids & Intermediates segments, respectively, primarily related to severance.


⁽⁶⁾	Specialty Fluids & Intermediates includes $7 million in 2011 in restructuring charges related to severance.


⁽⁷⁾	Research and development, pension and OPEB, and other expenses not identifiable to an operating segment are not included in segment operating results for any of the periods presented and are shown as "other" operating earnings (loss).

⁽⁸⁾

Other includes $27 million in 2012 in asset impairments and restructuring charges, primarily related to restructuring charges of $17 million for inventory costs in excess of recoverable value on certain discontinued Perennial Wood^TM product lines and to accrue for losses on take-or-pay contracts with third parties; the impairment of $6 million of land retained from the previously discontinued Beaumont, Texas industrial gasification project; and impairments and restructuring charges of $4 million for termination of the research and development activities at a site it acquired in 2011.


⁽⁹⁾	Other includes a $15 million gain in 2011 from the sale of the previously impaired methanol and ammonia assets related to the discontinued industrial gasification project as well as $8 million in 2010 in asset impairments and restructuring charges, net, related to the discontinued industrial gasification project.


⁽¹⁰⁾	Other includes MTM pension and OPEB adjustments for actuarial net losses of $276 million, $144 million, and $53 million in 2012, 2011, and 2010, respectively.

For more information about asset impairments and restructuring charges included in operating earnings, see Note 19, "Asset Impairments and Restructuring Charges (Gains), Net".



	December 31,
(Dollars in millions)	2012		2011
Assets by Segment ⁽¹⁾
Additives & Functional Products	$	2,892	$	836
Adhesives & Plasticizers	1,088		1,011
Advanced Materials	3,744		1,194
Fibers	937		921
Specialty Fluids & Intermediates	1,987		997
Total Assets by Segment	10,648		4,959
Corporate Assets	971		1,225
Total Assets	$	11,619	$	6,184


⁽¹⁾	The chief operating decision maker holds segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets.



	For years ended December 31,
(Dollars in millions)	2012		2011		2010
Depreciation and Amortization Expense by Segment
Additives & Functional Products	$	63	$	33	$	28
Adhesives & Plasticizers	46		44		37
Advanced Materials	109		64		63
Fibers	66		68		61
Specialty Fluids & Intermediates	72		60		52
Total Depreciation and Amortization Expense by Segment	356		269		241
Other	4		4		3
Total Depreciation and Amortization Expense	$	360	$	273	$	244



	For years ended December 31,
(Dollars in millions)	2012		2011		2010
Capital Expenditures by Segment
Additives & Functional Products	$	70	$	44	$	24
Adhesives & Plasticizers	51		58		33
Advanced Materials	153		193		73
Fibers	52		51		39
Specialty Fluids & Intermediates	128		79		43
Total Capital Expenditures by Segment	454		425		212
Other ⁽¹⁾	11		32		31
Total Capital Expenditures	$	465	$	457	$	243


⁽¹⁾	Other includes $24 million for 2010 of capital expenditures in the discontinued Performance Polymers segment. For more information regarding the sale of the PET business, see Note 3, "Discontinued Operations".

Schedule of Sales and Long-Lived Assets Geographic Information



	For years ended December 31,
(Dollars in millions)	2012		2011		2010
Geographic Information
Sales
United States	$	3,831	$	3,662	$	2,826
All foreign countries	4,271		3,516		3,016
Total	$	8,102	$	7,178	$	5,842

	December 31,
	2012		2011		2010
Long-Lived Assets, Net
United States ⁽¹⁾	$	3,172	$	2,687	$	2,790
All foreign countries	1,009		420		429
Total	$	4,181	$	3,107	$	3,219

⁽¹⁾

The Performance Polymers assets were classified as assets held for sale as of December 31, 2010, as a result of the definitive agreement with DAK Americas, LLC, to sell and subsequent sale in first quarter 2011 of the PET business, related assets at the Columbia, South Carolina site, and technology of its Performance Polymers segment. For more information regarding the sale of the PET business, see Note 3, "Discontinued Operations".

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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