v2.4.0.8
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2013
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, vinyl chloride monomer ("VCM"), vinyl resins, ethylene dichloride (or 1, 2 dichloroethane) ("EDC"), chlorinated solvents, calcium hypochlorite, hydrochloric acid ("HCL") and phosgene derivatives) and compound products (vinyl compounds and compound additives and plasticizers). The financial results of the Merged Business are included with the chlorovinyls segment from January 28, 2013, the closing date of the merger. Our building products segment consists of two primary product groups: (i) window and door profiles and trim, mouldings and deck products; and (ii) outdoor building products, which currently includes siding, exterior accessories, pipe and pipe fittings. Our aromatics segment 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 for the years ended December 31, 2013, 2012 and 2011 are provided in the tables 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 millions)
   Chlorovinyls   Building
Products		   Aromatics   Eliminations,
Unallocated
and Other		    
   Total  

Year Ended December 31, 2013

                                    

Net sales

   $ 2,917.3   $ 849.9   $ 898.8   $ -       $ 4,666.0  

Intersegment revenues

   $ 226.2     0.1     -     (226.3 )     $ -  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total net sales

   $ 3,143.5     850.0     898.8     (226.3 )     $ 4,666.0  

Transaction related costs and other, net

   $ (8.7 )   3.2     -     41.1       $ 35.6  

Long-lived asset impairment charges, net

   $ -     28.5     -     7.5       $ 36.0  

Operating income

   $ 434.9     3.0     29.1     (96.2 ) (1)   $ 370.8  

Depreciation and amortization

   $ 174.2     35.7     1.2     6.9       $ 218.0  

Capital expenditures

   $ 132.7     44.4     7.1     11.9       $ 196.1  

Total assets

   $ 5,074.0     577.8     146.8     78.6       $ 5,877.2  

Year Ended December 31, 2012:

    
 		    
 		    
 		    
 		  

 

    
 		  

Net sales

   $ 1,344.9   $ 876.6   $ 1,104.3   $ -       $ 3,325.8  

Intersegment revenues

   $ 236.1     0.4     -     (236.5 )     $ -  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total net sales

   $ 1,581.0     877.0     1,104.3     (236.5 )     $ 3,325.8  

Transaction related costs and other, net

   $ 1.3     1.5     -     36.1       $ 38.9  

Long-lived asset impairment charges, net

   $ -     (0.8 )   -     -       $ (0.8 )

Gain on sale of assets

   $ (19.3 )   -     -     -       $ (19.3 )

Operating income

   $ 237.2     18.4     64.6     (82.1 ) (1)   $ 238.1  

Depreciation and amortization

   $ 45.2     38.4     1.5     4.7       $ 89.8  

Capital expenditures

   $ 44.7     24.9     2.7     8.0       $ 80.3  

Total assets

   $ 966.4     604.5     180.1     50.3       $ 1,801.3  

Year Ended December 31, 2011:

    
 		    
 		    
 		    
 		  

 

    
 		  

Net sales

   $ 1,318.7   $ 883.9   $ 1,020.3   $ -       $ 3,222.9  

Intersegment revenues

   $ 235.7     -     -     (235.7 )     $ -  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total net sales

   $ 1,554.4     883.9     1,020.3     (235.7 )     $ 3,222.9  

Transaction related costs and other, net

   $ 0.5     2.8     -     -       $ 3.3  

Long-lived asset impairment charges, net

   $ -     8.3     -     -       $ 8.3  

Gain on sale of assets

   $ (1.1 )   -     -     -       $ (1.1 )

Operating income

   $ 143.3     7.5     10.4     (36.6 ) (1)   $ 124.6  

Depreciation and amortization

   $ 56.0     39.7     1.5     4.3       $ 101.5  

Capital expenditures

   $ 37.1     23.8     1.6     3.9       $ 66.4  

Total assets

   $ 874.6     606.4     121.3     41.9       $ 1,644.2  
(1)
Includes shared services, administrative and legal expenses.

Sales by Product Line

The table below summarizes sales by product line for the years ended December 31, 2013, 2012 and 2011.

 
   Year Ended December 31,  
(In millions)
   2013   2012   2011  

Chlorovinyls

                    

Chlor-alkali and derivative products

   $ 2,447.2   $ 886.2   $ 888.3  

Compound products

     470.1     458.7     430.4  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

     2,917.3     1,344.9     1,318.7  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Building Products

                    

Window and door profiles and moulding products

     314.4     319.1     331.0  

Outdoor building products

     535.5     557.5     552.9  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

     849.9     876.6     883.9  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Aromatics

                    

Cumene products

     569.8     763.5     603.8  

Phenol and acetone products

     329.0     340.8     416.5  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

     898.8     1,104.3     1,020.3  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net Sales

   $ 4,666.0   $ 3,325.8   $ 3,222.9  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Geographic Areas

Sales are attributable to geographic areas based on customer location and were as follows for the years ended December 31, 2013, 2012 and 2011.

 
   Year Ended December 31,  
(In millions)
   2013   2012   2011  

Net sales:

                    

United States

   $ 3,748.1   $ 2,625.7   $ 2,450.4  

Non-U.S.

     917.9     700.1     772.5  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net Sales

   $ 4,666.0   $ 3,325.8   $ 3,222.9  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Export sales as a percentage of net sales were approximately 20 percent, 21 percent and 24 percent for the years ended December 31, 2013, 2012 and 2011, respectively. Based on destination, the principal international markets we serve are Canada and Asia. Net sales to Canada in 2013 were 12 percent of net sales as compared to 16 percent and 17 percent of net sales in 2012 and 2011, respectively.

Long-lived assets, excluding intangible assets, are based on asset location. As of December 31, 2013 and 2012, our long-lived assets, excluding intangible assets, by geographic areas were as follows:

 
   December 31,  
(In millions)
   2013   2012  

Long-lived assets (excluding intangible assets):

              

United States

   $ 1,335.4   $ 423.5  

Non-U.S.

     323.3     214.2  
           
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 1,658.7   $ 637.7  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

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, 2013 and 2012 were as follows:

 
   December 31,  
(In millions)
   2013   2012  

Net assets (liabilities):

              

United States

   $ 2,375.3   $ 699.6  

Non-U.S.

     353.0     (96.1 )
           
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 2,728.3   $ 603.5  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​