Markets The following table illustrates the destination of the net sales of the Ticona segment by geographic region of the Successor for the years ended December 31, 2006 and 2005 and the nine months ended December 31, 2004 and of the Predecessor for the three months ended March 31, 2004.
Net Sales to External Customers by Destination — Technical Polymers Ticona
## Table 0 ##
Ticona’s sales in the Asian market are made mainly through its ventures, Polyplastics, KEPCO and Fortron Industries, which are accounted for under the equity method and therefore not included in Ticona’s consolidated net sales.
If Ticona’s portion of the sales made by these ventures were included in the chart above, the percentage of sales sold in Asia/Australia would be substantially higher.
A number of Ticona’s POM customers, particularly in the appliance, electrical components, toys and certain sections of the electronics/telecommunications fields, have moved tooling and molding operations to Asia, particularly southern China.
To meet the expected increased demand in this region, we, along with Polyplastics, Mitsubishi Gas Chemical Company Inc. , and KEPCO agreed on a venture which operates a world-scale 60,000 metric ton POM facility in Nantong, China.
Through our investment in the aforementioned companies, we indirectly own an approximate 38% interest in this venture.
The new plant commenced operations in 2005.
Ticona’s principal customers are consumer product manufacturers and suppliers to the automotive industries.
These customers primarily produce engineered products, and Ticona works closely with its customers to assist them to develop and improve specialized applications and systems.
Ticona has long-standing relationships with most of its major customers, but it also uses distributors for most of its major products, as well as a number of electronic channels, such as its BuyTiconaDirect on-line ordering system, and other electronic marketplaces to reach a larger customer base.
For most of Ticona’s product lines, contracts with customers typically have a term of one to two years.
A significant swing in the economic conditions of the end markets of Ticona’s principal customers could significantly affect the demand for Ticona’s products.
Competition Ticona’s principal competitors include BASF, DuPont, DSM N. V. , General Electric Company and Solvay S. A.
Smaller regional competitors include Asahi Kasei Corporation, Mitsubishi Gas Chemicals, Inc. , Chevron Phillips Chemical Company, L. P. , Braskem S. A. , Lanxess AG, Teijin, Sumitomo, Inc.  and Toray Industries Inc.  ACETATE PRODUCTS The Acetate Products segment consists of acetate filter products or acetate tow and acetate flake, which uses the “Celanese” brand to market its products.
The acetate tow market continues to be characterized by stability and expected global growth of between 1% and 2% per year.
The segment’s acetate filament business line was discontinued in the fourth quarter of 2005.
See Item 1.  Business — Segment Overview for discussion of key products and major end-use markets.
Plan Assets The weighted average target asset allocations for the Company's pension plans in 2016 are as follows:
## Table 1 ##
On average, the actual return on the US qualified defined pension plans' assets over the long-term (20 years) has exceeded the expected long-term rate of asset return assumption.
The US qualified defined benefit plans' actual return on assets for the year ended December 31, 2016 was 6.9% versus an expected long-term rate of asset return assumption of 7.5%.
The expected longterm rate of asset return assumption used to determine 2017 net periodic benefit cost is 7.5% for the US qualified defined benefit plans.
The Company's defined benefit plan assets are measured at fair value on a recurring basis (Note 2) as follows: Cash and Cash Equivalents: Foreign and domestic currencies as well as short term securities are valued at cost plus accrued interest, which approximates fair value.
Equity securities, treasuries and corporate debt: Valued at the closing price reported on the active market in which the individual securities are traded.
Automated quotes are provided by multiple pricing services and validated by the plan custodian.
These securities are traded on exchanges as well as in the over the counter market.
Registered Investment Companies: Composed of various mutual funds and other investment companies whose diversified portfolio is comprised of foreign and domestic equities, fixed income securities, and short term investments.
Investments are valued at the net asset value of units held by the plan at year-end.
Common/Collective Trusts: Composed of various funds whose diversified portfolio is comprised of foreign and domestic equities, fixed income securities, and short term investments.
Investments are valued at the net asset value of units held by the plan at year-end.
Derivatives: Derivative financial instruments are valued in the market using discounted cash flow techniques.
These techniques incorporate Level 1 and Level 2 fair value measurement inputs such as interest rates and foreign currency exchange rates.
These market inputs are utilized in the discounted cash flow calculation considering the instrument's term, notional amount, discount rate and credit risk.
Significant inputs to the derivative valuation for interest rate swaps, foreign currency forwards and swaps, and options are observable in the active markets and are classified as Level 2 in the fair value measurement hierarchy.
Mortgage backed securities: Fair value is estimated based on valuations obtained from third-party pricing services for identical or comparable assets.
Mortgage Backed Securities are traded in the over the counter broker/dealer market.
Insurance contracts: Valued at contributions made, plus earnings, less participant withdrawals and administrative expenses, which approximates fair value.
Short-term investment funds: Composed of various funds whose portfolio is comprised of foreign and domestic currencies as well as short-term securities.
Investments are valued at the net asset value of units held by the plan at year-end.
Other: Composed of real estate investment trust common stock valued at closing price as reported on the active market in which the individual securities are traded.
Table of Contents 14 Our strategic affiliates have similar business models as our core businesses.
With shared characteristics such as products, applications and manufacturing technology, these strategic affiliates complement and extend our technology and specialty materials portfolio.
We have historically entered into these investments to gain access to local demand, minimize costs and accelerate growth in areas we believe have significant future business potential.
Depending on the level of investment and other factors, we account for our strategic affiliates using either the equity method or cost method of accounting.
Our strategic affiliates contribute substantial earnings and cash flows to us.
During the year ended December 31, 2016, our equity method strategic affiliates generated combined sales of $2.0 billion, resulting in our recording $122 million of equity in net earnings of affiliates and $92 million of dividends.
Our strategic affiliates as of December 31, 2016 are as follows:
## Table 2 ##
National Methanol Company (Ibn Sina).
National Methanol Company represents approximately 1% of the world's methanol production capacity and is one of the world's largest producers of methyl tertiary-butyl ether, a gasoline additive.
Its production facilities are located in Saudi Arabia.
Saudi Basic Industries Corporation ("SABIC") is responsible for all product marketing.
Methanol is a key feedstock for POM production and is produced by our Ibn Sina affiliate which provides an economic hedge against raw material costs in our engineered materials business.
Ibn Sina is currently constructing a 50,000 ton POM production facility in Saudi Arabia.
The new facility will supply POM to support Advanced Engineered Materials' future growth plans as well as our venture partners' regional business development.
Upon successful startup of the POM facility, which is expected to occur in mid-2017, our indirect economic interest in Ibn Sina will increase from 25% to 32.5%.
SABIC's economic interest will remain unchanged.
KEPCO.
KEPCO is the leading producer of POM in South Korea.
KEPCO has polyacetal production facilities in Ulsan, South Korea, compounding facilities for PBT and nylon in Pyongtaek, South Korea, and participates with Polyplastics and Mitsubishi Gas Chemical Company, Inc.  in a world-scale POM facility in Nantong, China.
Polyplastics.
Polyplastics is a leading supplier of engineered plastics.
Polyplastics is a manufacturer and/or marketer of POM, LCP and PPS, with principal production facilities located in Japan and Malaysia.
Fortron Industries LLC.
Fortron Industries LLC ("Fortron") is a leading global producer of PPS, sold under the Fortron ?
brand, which is used in a wide variety of automotive and other applications, especially those requiring heat and/or chemical resistance.
Fortron's facility is located in Wilmington, North Carolina.
This venture combines our sales, marketing, distribution, compounding and manufacturing expertise with the PPS polymer technology expertise of Kureha America Inc.  Cellulose derivatives strategic ventures.
Our cellulose derivatives ventures within our Consumer Specialties segment generally fund their operations using operating cash flow and pay dividends based on each ventures' performance in the preceding year.
In 2016, 2015 and 2014, we received cash dividends of $107 million, $106 million and $115 million, respectively
Table of Contents 15 Although our ownership interest in each of our cellulose derivatives ventures exceeds 20%, we account for these investments using the cost method of accounting because we determined that we cannot exercise significant influence over these entities due to local government investment in and influence over these entities, limitations on our involvement in the day-to-day operations and the present inability of the entities to provide timely financial information prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP").
Other Equity Method Investments InfraServs.
We hold indirect ownership interests in several German InfraServ Groups that own and develop industrial parks and provide on-site general and administrative support to tenants.
Our ownership interest in the equity investments in InfraServ affiliates are as follows:
## Table 3 ##
Research and Development Our businesses are innovation-oriented and conduct research and development activities to develop new, and optimize existing, production technologies, as well as to develop commercially viable new products and applications.
Research and development expense was $78 million, $119 million and $86 million for the years ended December 31, 2016, 2015 and 2014, respectively.
We consider the amounts spent during each of the last three fiscal years on research and development activities to be sufficient to execute our current strategic initiatives.
Intellectual Property We attach importance to protecting our intellectual property, including safeguarding our confidential information and through our patents, trademarks and copyrights, in order to preserve our investment in research and development, manufacturing and marketing.
Patents may cover processes, equipment, products, intermediate products and product uses.
We also seek to register trademarks as a means of protecting the brand names of our Company and products.
Patents.
In most industrial countries, patent protection exists for new substances and formulations, as well as for certain unique applications and production processes.
However, we do business in regions of the world where intellectual property protection may be limited and difficult to enforce.
Confidential Information.
We maintain stringent information security policies and procedures wherever we do business.
Such information security policies and procedures include data encryption, controls over the disclosure and safekeeping of confidential information and trade secrets, as well as employee awareness training.
Trademarks.
AOPlus?
, Ateva?
, Avicor?
, BriteCoat?
, Celanese?
, Celanex?
, Celcon?
, CelFX?
, Celstran?
, Celvolit?
, Clarifoil?
, Duroset?
, EcoVAE?
, Factor?
, Fortron?
, GUR?
, Hostaform?
, Impet?
, Mowilith?
, MetaLX?
, MT?
, Nutrinova?
, Qorus?
, Riteflex?
, SlideX?, Sunett?
, TCX?
, Thermx?
, TufCOR?
, VAntage?
, VAntagePlus?, Vectra?
, Vinamul?
, VitalDose?
, Zenite?
and certain other branded products and services named in this document are registered or reserved trademarks or service marks owned or licensed by Celanese.
The foregoing is not intended to be an exhaustive or comprehensive list of all registered or reserved trademarks and service marks owned or licensed by Celanese.
Fortron?
is a registered trademark of Fortron Industries LLC.
Hostaform?
is a registered trademark of Hoechst GmbH.
Mowilith?
is a registered trademark of Celanese in most European countries.
We monitor competitive developments and defend against infringements on our intellectual property rights.
Neither Celanese nor any particular business segment is materially dependent upon any one patent, trademark, copyright or trade secret.
Environmental and Other Regulation Matters pertaining to environmental and other regulations are discussed in Item 1A.
Risk Factors, as well as Note 2 - Summary of Accounting Policies, Note 16 - Environmental and Note 24 - Commitments and Contingencies in the accompanying consolidated financial statements.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="6"> Successor</td><td colspan="2" rowspan="2" Predecessor  Three Months   Ended   March 31,   2004></td></tr><tr><td></td><td colspan="2"> Year Ended   December 31,   2006</td><td colspan="2"> Year Ended   December 31,   2005</td><td colspan="2"> Nine Months   Ended   December 31,   2004</td></tr><tr><td></td><td></td><td> % of </td><td></td><td> % of </td><td></td><td> % of </td><td></td><td> % of </td></tr><tr><td></td><td> $</td><td> Segment</td><td> $</td><td> Segment</td><td> $</td><td> Segment</td><td> $</td><td> Segment</td></tr><tr><td></td><td colspan="7"> (In millions)</td><td></td></tr><tr><td>North America</td><td>311</td><td>34%</td><td>339</td><td>38%</td><td>247</td><td>39%</td><td>95</td><td>42%</td></tr><tr><td>Europe/Africa</td><td>500</td><td>55%</td><td>465</td><td>53%</td><td>331</td><td>52%</td><td>116</td><td>51%</td></tr><tr><td>Asia/Australia</td><td>55</td><td>6%</td><td>44</td><td>5%</td><td>33</td><td>5%</td><td>9</td><td>4%</td></tr><tr><td>Rest of World</td><td>49</td><td>5%</td><td>39</td><td>4%</td><td>25</td><td>4%</td><td>7</td><td>3%</td></tr></table>
<table><tr><td></td><td>USPlans</td><td>InternationalPlans</td></tr><tr><td></td><td colspan="2">(In percentages)</td></tr><tr><td>Bonds - domestic to plans</td><td>54</td><td>58</td></tr><tr><td>Equities - domestic to plans</td><td>26</td><td>16</td></tr><tr><td>Equities - international to plans</td><td>20</td><td>—</td></tr><tr><td>Other</td><td>—</td><td>26</td></tr><tr><td>Total</td><td>100</td><td>100</td></tr></table>
<table><tr><td></td><td>Location ofHeadquarters</td><td>Ownership</td><td>Partner(s)</td><td>YearEntered</td></tr><tr><td>Equity Method Investments</td><td></td><td></td><td></td><td></td></tr><tr><td>Advanced Engineered Materials</td><td></td><td></td><td></td><td></td></tr><tr><td>National Methanol Company</td><td>SaudiArabia</td><td>25 %</td><td>Saudi Basic Industries Corporation -50%;Texas Eastern Arabian Corporation Ltd. (25%)</td><td>1981</td></tr><tr><td>KEPCO</td><td>SouthKorea</td><td>50 %</td><td>Mitsubishi Gas Chemical Company, Inc. -40%;Mitsubishi Corporation (10%)</td><td>1999</td></tr><tr><td>Polyplastics</td><td>Japan</td><td>45 %</td><td>Daicel Corporation -55%</td><td>1964</td></tr><tr><td>Fortron Industries LLC</td><td>US</td><td>50 %</td><td>Kureha America Inc. -50%</td><td>1992</td></tr><tr><td>Cost Method Investments</td><td></td><td></td><td></td><td></td></tr><tr><td>Consumer Specialties</td><td></td><td></td><td></td><td></td></tr><tr><td>Kunming Cellulose Fibers Co. Ltd.</td><td>China</td><td>30 %</td><td>China National Tobacco Corporation -70%</td><td>1993</td></tr><tr><td>Nantong Cellulose Fibers Co. Ltd.</td><td>China</td><td>31 %</td><td>China National Tobacco Corporation -69%</td><td>1986</td></tr><tr><td>Zhuhai Cellulose Fibers Co. Ltd.</td><td>China</td><td>30 %</td><td>China National Tobacco Corporation -70%</td><td>1993</td></tr></table>
<table><tr><td></td><td>As of December 31, 2016 (In percentages)</td></tr><tr><td>InfraServ GmbH & Co. Gendorf KG</td><td>39</td></tr><tr><td>InfraServ GmbH & Co. Hoechst KG</td><td>32</td></tr><tr><td>InfraServ GmbH & Co. Knapsack KG</td><td>27</td></tr></table>

Question: Which Sales occupies the greatest proportion in total amount (in 2006)?
Answer: Europe/Africa