SEGMENT INFORMATION |
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. 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 March 31, 2019 or December 31, 2018. Contract assets were $62 million as of March 31, 2019 and December 31, 2018 and are included as a component of "Miscellaneous receivables" in the Unaudited Consolidated Statements of Financial Position.
| | | | | | | | | (Dollars in millions) | First Quarter | Sales by Segment | 2019 | | 2018 | Additives & Functional Products | $ | 855 |
| | $ | 939 |
| Advanced Materials | 657 |
| | 693 |
| Chemical Intermediates | 655 |
| | 730 |
| Fibers | 213 |
| | 245 |
| Total Sales by Operating Segment | 2,380 |
| | 2,607 |
| Other | — |
| | — |
| Total Sales | $ | 2,380 |
| | $ | 2,607 |
|
| | | | | | | | | (Dollars in millions) | First Quarter | Earnings Before Interest and Taxes by Segment | 2019 | | 2018 | Additives & Functional Products | $ | 146 |
| | $ | 176 |
| Advanced Materials | 102 |
| | 135 |
| Chemical Intermediates | 73 |
| | 70 |
| Fibers | 42 |
| | 43 |
| Total Earnings Before Interest and Taxes by Operating Segment | 363 |
| | 424 |
| Other | |
| | |
| Growth initiatives and businesses not allocated to operating segments | (27 | ) | | (26 | ) | Pension and other postretirement benefits income (expense), net not allocated to operating segments | 12 |
| | 21 |
| Asset impairments and restructuring charges, net | (28 | ) | | (2 | ) | Other income (charges), net not allocated to operating segments | — |
| | (8 | ) | Total Earnings Before Interest and Taxes | $ | 320 |
| | $ | 409 |
|
| | | | | | | | | (Dollars in millions) | March 31, | | December 31, | Assets by Segment (1) | 2019 | | 2018 | Additives & Functional Products | $ | 6,561 |
| | $ | 6,545 |
| Advanced Materials | 4,610 |
| | 4,456 |
| Chemical Intermediates | 2,890 |
| | 2,934 |
| Fibers | 1,050 |
| | 978 |
| Total Assets by Operating Segment | 15,111 |
| | 14,913 |
| Corporate Assets | 1,250 |
| | 1,082 |
| Total Assets | $ | 16,361 |
| | $ | 15,995 |
|
| | (1) | Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. |
| | | | | | | | | (Dollars in millions) | First Quarter | Sales by Customer Location | 2019 | | 2018 | United States and Canada | $ | 1,000 |
| | $ | 1,100 |
| Asia Pacific | 553 |
| | 642 |
| Europe, Middle East, and Africa | 689 |
| | 727 |
| Latin America | 138 |
| | 138 |
| Total Sales | $ | 2,380 |
| | $ | 2,607 |
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