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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