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Segment Information | 12 Months Ended
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Dec. 31, 2011
Segment Information [Abstract] |
Segment Information | 18. Segment Information Factors Used by Management to Identify the Enterprise’s Reportable Segments and Measurement of Segment Income or Loss and Segment Assets We have two reportable segments (business segments): the Climate Control Business and the Chemical Business. Our reportable segments are based on business units that offer similar products and services. The reportable segments are each managed separately because they manufacture and distribute distinct products with different production processes. We evaluate performance and allocate resources based on operating income or loss. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Description of Each Reportable Segment Climate Control Business — The Climate Control Business segment manufactures and sells the following variety of heating, ventilation, and air conditioning (“HVAC”) products:
| • |  | geothermal and water source heat pumps,
| • |  | hydronic fan coils, and
| • |  | other HVAC products including large custom air handlers, modular geothermal and other chillers and other products and services.
These HVAC products are primarily for use in commercial/institutional and residential new building construction, renovation of existing buildings and replacement of existing systems. Our various facilities located in Oklahoma City comprise substantially all of the Climate Control segment’s operations. Sales to customers of this segment primarily include original equipment manufacturers, contractors and independent sales representatives located throughout the world. Chemical Business — The Chemical Business segment manufactures and sells:
| • |  | anhydrous ammonia, fertilizer grade AN, UAN, and ammonium nitrate ammonia solution for agricultural applications,
| • |  | high purity and commercial grade anhydrous ammonia, high purity AN, sulfuric acids, concentrated, blended and regular nitric acid, mixed nitrating acids, and diesel exhaust fluid for industrial applications, and
| • |  | industrial grade AN and solutions for the mining industry.
Our chemical production facilities are located in El Dorado, Arkansas; Cherokee, Alabama; Pryor, Oklahoma; and Baytown, Texas. Sales to customers of this segment primarily include farmers, ranchers, fertilizer dealers and distributors primarily in the ranch land and grain production markets in the United States; industrial users of acids throughout the United States and parts of Canada; and explosive manufacturers in the United States. The Pryor Facility began limited production in the first quarter of 2010 but did not reach sustained production of anhydrous ammonia until the fourth quarter of 2010. Currently, this facility’s production is predominantly agricultural products, primarily UAN and anhydrous ammonia. During 2011, the Pryor Facility had net sales of approximately $91.9 million to unrelated third parties compared to $25.0 million in 2010 (none in 2009). As of December 31, 2011, our Chemical Business employed 492 persons, with 149 represented by unions under agreements, which will expire in July through November of 2013. Other — The business operation classified as “Other” primarily sells industrial machinery and related components to machine tool dealers and end users located primarily in North America. Segment Financial Information Information about our continuing operations in different business segments is detailed below.
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (In Thousands) |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
Climate Control: |  |  |  |  |  |  |  |  |  |  |  |
Geothermal and water source heat pumps |  | $ | 183,789 |  |  | $ | 171,561 |  |  | $ | 179,865 |
Hydronic fan coils |  |  | 54,379 |  |  |  | 37,923 |  |  |  | 46,381 |
Other HVAC products |  |  | 43,397 |  |  |  | 41,037 |  |  |  | 39,923 |
Total Climate Control |  |  | 281,565 |  |  |  | 250,521 |  |  |  | 266,169 |
Chemical: |  |  |  |  |  |  |  |  |  |  |  |
Agricultural products |  |  | 231,599 |  |  |  | 135,598 |  |  |  | 104,300 |
Industrial acids and other chemical products |  |  | 161,776 |  |  |  | 126,846 |  |  |  | 95,997 |
Mining products |  |  | 118,479 |  |  |  | 88,642 |  |  |  | 57,535 |
Total Chemical |  |  | 511,854 |  |  |  | 351,086 |  |  |  | 257,832 |
Other |  |  | 11,837 |  |  |  | 8,298 |  |  |  | 7,837 |
|  | $ | 805,256 |  |  | $ | 609,905 |  |  | $ | 531,838 |
Gross profit: |  |  |  |  |  |  |  |  |  |  |  |
Climate Control |  | $ | 88,178 |  |  | $ | 86,364 |  |  | $ | 92,409 |
Chemical |  |  | 130,687 |  |  |  | 49,295 |  |  |  | 42,422 |
Other |  |  | 4,153 |  |  |  | 2,966 |  |  |  | 2,583 |
|  | $ | 223,018 |  |  | $ | 138,625 |  |  | $ | 137,414 |
Operating income: |  |  |  |  |  |  |  |  |  |  |  |
Climate Control |  | $ | 32,759 |  |  | $ | 35,338 |  |  | $ | 37,706 |
Chemical |  |  | 116,503 |  |  |  | 31,948 |  |  |  | 15,122 |
General corporate expenses and other business operations, net (1) |  |  | (12,819 | ) |  |  | (11,361 | ) |  |  | (12,118 | )
|  |  | 136,443 |  |  |  | 55,925 |  |  |  | 40,710 |
Interest expense |  |  | (6,658 | ) |  |  | (7,427 | ) |  |  | (6,746 | )
Gain (losses) on extinguishment of debt |  |  | (136 | ) |  |  | (52 | ) |  |  | 1,783 |
Non-operating income (expense), net: |  |  |  |  |  |  |  |  |  |  |  |
Climate Control |  |  | 2 |  |  |  | 3 |  |  |  | 8 |
Chemical |  |  | 1 |  |  |  | 7 |  |  |  | 31 |
Corporate and other business operations |  |  | (3 | ) |  |  | 43 |  |  |  | 91 |
Provisions for income taxes |  |  | (46,208 | ) |  |  | (19,787 | ) |  |  | (15,024 | )
Equity in earnings of affiliate — Climate Control |  |  | 543 |  |  |  | 1,003 |  |  |  | 996 |
Income from continuing operations |  | $ | 83,984 |  |  | $ | 29,715 |  |  | $ | 21,849 |
(1) General corporate expenses and other business operations, net consist of the following:
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (In Thousands) |
Gross profit-Other |  | $ | 4,153 |  |  | $ | 2,966 |  |  | $ | 2,583 |
Selling, general and administrative: |  |  |  |  |  |  |  |  |  |  |  |
Personnel costs |  |  | (8,418 | ) |  |  | (7,865 | ) |  |  | (8,083 | )
Professional fees |  |  | (3,805 | ) |  |  | (3,784 | ) |  |  | (3,687 | )
All other |  |  | (4,224 | ) |  |  | (3,040 | ) |  |  | (2,917 | )
Total selling, general and administrative |  |  | (16,447 | ) |  |  | (14,689 | ) |  |  | (14,687 | )
Other income |  |  | 118 |  |  |  | 366 |  |  |  | 192 |
Other expense |  |  | (643 | ) |  |  | (4 | ) |  |  | (206 | )
Total general corporate expenses and other business operations, net |  | $ | (12,819 | ) |  | $ | (11,361 | ) |  | $ | (12,118 | )
Information about our PP&E and total assets by business segment is detailed below:
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (In Thousands) |
Depreciation of PP&E: |  |  |  |  |  |  |  |  |  |  |  |
Climate Control |  | $ | 3,853 |  |  | $ | 4,026 |  |  | $ | 4,077 |
Chemical |  |  | 14,659 |  |  |  | 13,154 |  |  |  | 11,291 |
Corporate assets and other |  |  | 250 |  |  |  | 149 |  |  |  | 233 |
Total depreciation of PP&E |  | $ | 18,762 |  |  | $ | 17,329 |  |  | $ | 15,601 |
Additions to PP&E: |  |  |  |  |  |  |  |  |  |  |  |
Climate Control |  | $ | 5,746 |  |  | $ | 7,177 |  |  | $ | 6,438 |
Chemical |  |  | 39,835 |  |  |  | 28,850 |  |  |  | 24,627 |
Corporate assets and other |  |  | 2,376 |  |  |  | 518 |  |  |  | 271 |
Total additions to PP&E |  | $ | 47,957 |  |  | $ | 36,545 |  |  | $ | 31,336 |
Total assets at December 31: |  |  |  |  |  |  |  |  |  |  |  |
Climate Control |  | $ | 119,323 |  |  | $ | 112,894 |  |  | $ | 102,029 |
Chemical |  |  | 214,246 |  |  |  | 179,033 |  |  |  | 143,800 |
Corporate assets and other |  |  | 168,440 |  |  |  | 96,054 |  |  |  | 92,804 |
Total assets |  | $ | 502,009 |  |  | $ | 387,981 |  |  | $ | 338,633 |
Net sales by business segment include net sales to unaffiliated customers as reported in the consolidated financial statements. Net sales classified as “Other” consist of sales of industrial machinery and related components. Intersegment net sales are not significant. Gross profit by business segment represents net sales less cost of sales. Gross profit classified as “Other” relates to the sales of industrial machinery and related components. Our chief operating decision makers use operating income by business segment for purposes of making decisions that include resource allocations and performance evaluations. Operating income by business segment represents gross profit by business segment less SG&A incurred by each business segment plus other income and other expense earned/incurred by each business segment before general corporate expenses and other business operations, net. General corporate expenses and other business operations, net consist of unallocated portions of gross profit, SG&A, other income and other expense. Identifiable assets by business segment are those assets used in the operations of each business. Corporate assets and other are those principally owned by LSB or by subsidiaries not involved in the two identified businesses. All net sales and long-lived assets relate to domestic operations for the periods presented. Net sales to unaffiliated customers are to U.S. customers except foreign export sales as follows:
Geographic Area |  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (In Thousands) |
Canada |  | $ | 23,765 |  |  | $ | 19,345 |  |  | $ | 20,224 |
Middle East |  |  | 5,688 |  |  |  | 6,257 |  |  |  | 4,440 |
Mexico, Central and South America |  |  | 2,452 |  |  |  | 1,411 |  |  |  | 2,154 |
Europe |  |  | 2,015 |  |  |  | 2,373 |  |  |  | 1,114 |
South and East Asia |  |  | 1,077 |  |  |  | 1,635 |  |  |  | 1,124 |
Other |  |  | 1,218 |  |  |  | 835 |  |  |  | 843 |
|  | $ | 36,215 |  |  | $ | 31,856 |  |  | $ | 29,899 |
In general, foreign export sales are attributed based upon the location of the customer. Major Customer Net sales to one customer, Orica, of our Chemical Business segment represented approximately 11%, 11% and 7% of our total net sales for 2011, 2010 and 2009, respectively. See discussion concerning the supply agreement in Note 11 — Commitments and Contingencies.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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