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Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
30
PERFORMANCE MATERIALS
(Dollars in millions) 2014 2013 2012
Segment sales $ 6,129 $ 6,239 $ 6,185
PTOI $ 1,590 $ 1,264 $ 1,073
PTOI margin 26% 20% 17%
2014 2013
Change in segment sales from prior period due to:
Price — % (3)%
Volume 2 % 5 %
Portfolio / Other (4)% (1)%
Total change (2)% 1 %
2014 versus 2013 Full year 2014 segment sales of $6.1 billion decreased $0.1 billion, or 2 percent, due primarily to the impact
of the sale of GLS/Vinyls (see Note 2 to the Consolidated Financial Statements for additional information) and decreased ethylene
volumes as a result of the second quarter scheduled outage at the Orange, Texas ethylene unit. This was partially offset by increased
demand in automotive markets, primarily in China, Europe and North America.
2014 PTOI and PTOI margin increased, due primarily to a $391 million pre-tax gain on the sale of GLS/Vinyls, partially offset
by the impact of portfolio changes. Restructuring charges of $99 million were incurred in 2014 compared to $16 million in 2013
(see Note 3 to the Consolidated Financial Statements for additional information related to the 2014 restructuring program).
2013 versus 2012 Sales were essentially flat as increased demand in packaging and automotive markets was mostly offset by
lower selling prices.
2013 PTOI and PTOI margin increased as lower feedstock costs, higher volumes, and the absence of a $92 million asset impairment
charge recorded in 2012 (see Note 3 to the Consolidated Financial Statements for additional information) more than offset lower
selling prices and negative currency impact.
Outlook Full year 2015 segment sales are expected to decrease in the mid-single digits on a percent basis, as increased volumes
are expected to be offset by decreases due to portfolio changes, local price decreases and a negative impact of currency. PTOI is
expected to increase in the mid-single digits on increased volumes offset by the negative impact of currency.