v2.4.0.6

SEGMENT INFORMATION | 12 Months Ended
--- | ---
Dec. 31, 2012
SEGMENT INFORMATION |
SEGMENT INFORMATION | 17. SEGMENT INFORMATION We have three reportable segments through which we manage our operating activities: (i) chlorovinyls; (ii) building products; and (iii) aromatics. These three segments reflect the organization used by our management for internal reporting purposes. Our chlorovinyls segment produces a highly integrated chain of products, including chlor-alkali and derivative products (chlorine, caustic soda, VCM and vinyl resins at December 31, 2012) and compound products (vinyl compounds and compound additives and plasticizers). Our building products segment consists of two primary product groups: window and door profiles and mouldings products, which include extruded vinyl window and door profiles and interior and exterior moulding products; and vinyl-based home improvement and building products that are marketed under the Royal Building Products, Celect, Zuri, Korflo, Overture, S4S and Exterior Portfolio brand names. We discontinued manufacturing and selling fence products in March 2012. Our aromatics segment is highly integrated and manufactures cumene products and phenol and acetone products (co-products made from cumene). Earnings of our segments exclude interest income and expense, unallocated corporate expenses and general plant services and provision for income taxes. Transactions between operating segments are valued at market based prices. The revenues generated by these transfers are provided in the table below. Identifiable assets consist of property, plant and equipment used in the operations of the segment as well as inventory, receivables and other assets directly related to the segment. Unallocated and other assets include cash, certain corporate receivables and data processing equipment. The accounting policies of the reportable segments are the same as those described in Note 1, Summary of Significant Accounting Policies and Nature of the Business.
(In thousands) |  | Chlorovinyls |  | Aromatics |  | Building Products |  | Eliminations, Unallocated and Other |  |  |  | Total |
--- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ---
Year Ended December 31, 2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 1,344,908 |  | $ | 1,104,290 |  | $ | 876,638 |  | $ | - |  |  |  | $ | 3,325,836 |
Intersegment revenues |  |  | 236,043 |  |  | - |  |  | 447 |  |  | (236,490 | ) |  |  |  | - |
Total net sales |  |  | 1,580,951 |  |  | 1,104,290 |  |  | 877,085 |  |  | (236,490 | ) |  |  |  | 3,325,836 |
Transaction related costs, restructuring and other, net |  |  | 1,259 |  |  | - |  |  | 1,504 |  |  | 36,070 |  |  |  |  | 38,833 |
Gain on sale of assets |  |  | (19,250 | ) |  | - |  |  | - |  |  | - |  |  |  |  | (19,250 | )
Long-lived asset impairment charges (recoveries), net |  |  | - |  |  | - |  |  | (824 | ) |  | - |  |  |  |  | (824 | )
Operating income |  |  | 237,214 |  |  | 64,569 |  |  | 18,447 |  |  | (82,020 | ) | (1) |  |  | 238,210 |
Depreciation and amortization |  |  | 45,163 |  |  | 1,533 |  |  | 38,414 |  |  | 4,747 |  |  |  |  | 89,857 |
Capital expenditures |  |  | 44,739 |  |  | 2,699 |  |  | 24,947 |  |  | 7,953 |  |  |  |  | 80,338 |
Total assets |  |  | 966,405 |  |  | 180,124 |  |  | 604,532 |  |  | 50,254 |  |  |  |  | 1,801,315 |
Year Ended December 31, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 1,318,678 |  | $ | 1,020,307 |  | $ | 883,899 |  | $ | - |  |  |  | $ | 3,222,884 |
Intersegment revenues |  |  | 235,683 |  |  | - |  |  | 3 |  |  | (235,686 | ) |  |  |  | - |
Total net sales |  |  | 1,554,361 |  |  | 1,020,307 |  |  | 883,902 |  |  | (235,686 | ) |  |  |  | 3,222,884 |
Transaction related costs, restructuring and other, net |  |  | 521 |  |  | - |  |  | 2,750 |  |  | - |  |  |  |  | 3,271 |
Gain on sale of assets |  |  | (1,150 | ) |  | - |  |  | - |  |  | - |  |  |  |  | (1,150 | )
Long-lived asset impairment charges |  |  | - |  |  | - |  |  | 8,318 |  |  | - |  |  |  |  | 8,318 |
Operating income |  |  | 143,304 |  |  | 10,370 |  |  | 7,500 |  |  | (36,575 | ) | (1) |  |  | 124,599 |
Depreciation and amortization |  |  | 56,014 |  |  | 1,483 |  |  | 39,658 |  |  | 4,367 |  |  |  |  | 101,522 |
Capital expenditures |  |  | 37,059 |  |  | 1,637 |  |  | 23,843 |  |  | 3,843 |  |  |  |  | 66,382 |
Total assets |  |  | 874,646 |  |  | 121,331 |  |  | 606,442 |  |  | 41,792 |  |  |  |  | 1,644,211 |
Year Ended December 31, 2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 1,224,724 |  | $ | 799,676 |  | $ | 793,639 |  | $ | - |  |  |  | $ | 2,818,040 |
Intersegment revenues |  |  | 245,977 |  |  | - |  |  | 140 |  |  | (246,117 | ) |  |  |  | - |
Total net sales |  |  | 1,470,701 |  |  | 799,676 |  |  | 793,779 |  |  | (246,117 | ) |  |  |  | 2,818,040 |
Transaction related costs, restructuring and other, net |  |  | (340 | ) |  | - |  |  | 442 |  |  | - |  |  |  |  | 102 |
Operating income |  |  | 114,297 |  |  | 23,335 |  |  | 14,554 |  |  | (37,917 | ) | (1) |  |  | 114,269 |
Depreciation and amortization |  |  | 59,524 |  |  | 1,405 |  |  | 33,695 |  |  | 5,067 |  |  |  |  | 99,691 |
Capital expenditures |  |  | 22,810 |  |  | 2,641 |  |  | 20,263 |  |  | - |  |  |  |  | 45,714 |
Total assets |  |  | 953,756 |  |  | 140,941 |  |  | 554,016 |  |  | 16,988 |  |  |  |  | 1,665,701 |
(1) Includes shared services, administrative and legal expenses. Sales by Product Line The table below summarizes sales by product line as of December 31, 2012, 2011 and 2010. Our chlor-alkali and derivative products were, as of December 31, 2012, primarily comprised of chlorine and caustic soda, VCM and vinyl resins. Our compound products are comprised of vinyl compounds and compound additives and plasticizers. Our outdoor building products are comprised of siding, pipe and pipe fittings and deck. We discontinued manufacturing and selling fence products in March 2012. Our aromatics products consist of cumene, phenol and acetone products.
|  | Years Ended December 31, |
--- | --- | --- | ---
(In thousands) |  | 2012 |  | 2011 |  | 2010 |
Chlorovinyls |  |  |  |  |  |  |  |  |  |
Chlor-alkali and derivative products |  | $ | 886,224 |  | $ | 888,312 |  | $ | 839,037 |
Compound products |  |  | 458,684 |  |  | 430,366 |  |  | 385,687 |
Total |  |  | 1,344,908 |  |  | 1,318,678 |  |  | 1,224,724 |
Aromatics |  |  |  |  |  |  |  |  |  |
Cumene products |  |  | 763,473 |  |  | 603,830 |  |  | 520,493 |
Phenol/acetone products |  |  | 340,817 |  |  | 416,477 |  |  | 279,183 |
Total |  |  | 1,104,290 |  |  | 1,020,307 |  |  | 799,676 |
Building Products |  |  |  |  |  |  |  |  |  |
Window & door profiles and moulding products |  |  | 319,116 |  |  | 331,039 |  |  | 347,998 |
Outdoor building products |  |  | 557,522 |  |  | 552,860 |  |  | 445,641 |
Total |  |  | 876,638 |  |  | 883,899 |  |  | 793,639 |
Net Sales |  | $ | 3,325,836 |  | $ | 3,222,884 |  | $ | 2,818,040 |
Geographic Areas Sales are attributable to geographic areas based on customer location and are as follows for the years ended December 31, 2012, 2011 and 2010.
|  | Years Ended December 31, |
--- | --- | --- | ---
(In thousands) |  | 2012 |  | 2011 |  | 2010 |
Net sales: |  |  |  |  |  |  |  |  |  |
United States |  | $ | 2,625,712 |  | $ | 2,450,365 |  | $ | 2,032,787 |
Non-U.S. |  |  | 700,124 |  |  | 772,519 |  |  | 785,253 |
Net Sales |  | $ | 3,325,836 |  | $ | 3,222,884 |  | $ | 2,818,040 |
Export sales were approximately 21 percent, 24 percent and 28 percent of our sales for the years ended December 31, 2012, 2011 and 2010, respectively. Based on destination, the principal international markets we serve are Canada and Asia. Net sales to Canada in 2012 were 16 percent of net sales as compared to 17 percent and 20 percent of net sales in 2011 and 2010, respectively. Long-lived assets are attributable to geographic areas based on asset location. Long-lived assets by geographic area as of December 31, 2012 and 2011 are as follows:
|  | December 31, |
--- | --- | --- | ---
(In thousands) |  | 2012 |  | 2011 |
Long-lived assets: |  |  |  |  |  |  |
United States |  | $ | 423,511 |  | $ | 423,600 |
Non-U.S. |  |  | 214,201 |  |  | 217,300 |
Total |  | $ | 637,712 |  | $ | 640,900 |
Net assets (liabilities) are attributable to geographic areas based on the location of the legal entity. Net assets (liabilities) by geographic locations as of December 31, 2012 and 2011 are as follows:
|  | December 31, |
--- | --- | --- | ---
(In thousands) |  | 2012 |  | 2011 |
Net assets (liabilities): |  |  |  |  |  |  |
United States |  | $ | 699,601 |  | $ | 586,900 |
Non-U.S. |  |  | (96,054 | ) |  | (98,236 | )
Total |  | $ | 603,547 |  | $ | 488,664 |

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration