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RELATED PARTY TRANSACTIONS
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12 Months Ended |
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Dec. 31, 2012
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| RELATED PARTY TRANSACTIONS | |
| RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS Our joint ventures are accounted for using the equity method. At December 31, 2012, we owned a 50 percent interest in PHH Monomers, LLC ("PHH"), a manufacturing joint venture with PPG, to produce VCM used in our chlorovinyls segment. Prior to the consummation of the Transactions, we received 50 percent of the VCM production of PHH and consumed the majority of the production to produce our vinyl resins. Pursuant to the terms of the operating agreement and a related manufacturing and services agreement, PPG was the operator of PHH. Prior to the consummation of the Transactions, we purchased our share of the raw materials and paid 50 percent of the processing costs for the right to 50 percent of the VCM production of PHH. PHH has capacity to produce 1.15 billion pounds of VCM. Prior to the consummation of the Transactions, the chlorine needs of the PHH facility were supplied via pipeline, under a long-term market price based contract with PPG. PHH is an integral part of our manufacturing operations. At December 31, 2012 and 2011, our investment in joint ventures included in our chlorovinyls segment was $2.2 million and $1.2 million, respectively, which primarily represents our interest in the PHH production facility and is included in other long-term assets. Upon consummation of the Transactions on January 28, 2013, PHH became a wholly-owned subsidiary. We own a 50 percent interest in several manufacturing joint ventures in the building products segment. We sell raw materials to these joint ventures at market prices. Sales of materials to these joint ventures for years ended 2012, 2011 and 2010 were $14.9 million, $11.0 million and $11.8 million, respectively. As of December 31, 2012 and 2011, our investment in these manufacturing joint ventures was $3.8 million and $5.2 million, respectively. At December 31, 2012 and 2011, we had $0.9 million and $0.8 million, respectively, of liabilities due to these related parties included in accounts payable. At December 31, 2012 and 2011, we had $5.3 million and $8.9 million, respectively, of receivables due from these related parties included in accounts receivable. Our equity in earnings from our joint ventures was $2.9 million, $2.4 million and $1.9 million for the years ended December 31, 2012, 2011 and 2010, respectively. |