v2.4.0.8
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2014
SEGMENT INFORMATION  
SEGMENT INFORMATION

16. 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, vinyl resins, ethylene dichloride (or 1, 2 dichloroethane) ("EDC"), chlorinated solvents, calcium hypochlorite, 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 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 and reconciliations from consolidated operating income to consolidated income before income taxes for the three and nine month periods ended September 30, 2014 and 2013 are provided in the tables below.

(In millions)
  Chlorovinyls   Building
Products		   Aromatics   Eliminations,
Unallocated
and Other		   Total  

Three Months Ended September 30, 2014

   ​        ​        ​        ​        ​       

Net sales

     $ 769.4     $ 277.8     $ 222.2     $ -     $ 1,269.4  

Intersegment revenues

   ​ 75.4   ​ -   ​ -   ​ (75.4 ) ​ -  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total net sales

     $ 844.8     277.8     222.2     (75.4 )   $ 1,269.4  

   ​        ​        ​        ​        ​       

Operating income

     $ 69.6     24.0     2.0     (21.4 )   $ 74.2  

Interest expense, net

   ​     ​ ​   ​ ​   ​ ​   ​ (19.5 ) 

Foreign exchange loss

                             (0.3 )
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income before income taxes

   ​     ​ ​   ​ ​   ​ ​     $ 54.4  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               

 

                                               

Three Months Ended September 30, 2013

   ​        ​        ​        ​        ​       

Net sales

     $ 750.0     $ 253.4     $ 194.1     $ -     $ 1,197.5  

Intersegment revenues

   ​ 61.8   ​ -   ​ -   ​ (61.8 ) ​ -  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total net sales

     $ 811.8     253.4     194.1     (61.8 )   $ 1,197.5  

   ​        ​        ​        ​        ​       

Operating income (loss)

     $ 101.6     (6.7 )   5.2     (22.0 )   $ 78.1  

Interest expense, net

   ​ ​   ​ ​   ​ ​   ​ ​   ​ (19.7 ) 

Foreign exchange loss

                             (0.4 )
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income before income taxes

   ​ ​   ​ ​   ​ ​   ​ ​     $ 58.0  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               


 

(In millions)
  Chlorovinyls   Building
Products		   Aromatics   Eliminations,
Unallocated
and Other		   Total  

Nine Months Ended September 30, 2014

   ​        ​        ​        ​        ​       

Net sales

     $ 2,229.5     $ 676.3     $ 594.2     $ -     $ 3,500.0  

Intersegment revenues

   ​ 195.1   ​ -   ​ -   ​ (195.1 ) ​ -  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total net sales

     $ 2,424.6     676.3     594.2     (195.1 )   $ 3,500.0  

   ​        ​        ​        ​        ​       

Operating income (loss)

     $ 159.5     27.4     (0.9 )   (53.8 )   $ 132.2  

Interest expense, net

   ​     ​ ​   ​ ​   ​ ​   ​ (56.9 ) 

Foreign exchange loss

                             (0.2 )
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income before income taxes

   ​     ​ ​   ​ ​   ​ ​     $ 75.1  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               

 

                                               

Nine Months Ended September 30, 2013

   ​        ​        ​        ​        ​       

Net sales

     $ 2,166.3     $ 660.0     $ 705.2     $ -     $ 3,531.5  

Intersegment revenues

   ​ 184.8   ​ -   ​ -   ​ (184.8 ) ​ -  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total net sales

     $ 2,351.1     $ 660.0     $ 705.2     $ (184.8 )   $ 3,531.5  

   ​        ​        ​        ​        ​       

Operating income (loss)

     $ 311.0     (0.9 )   22.5     (58.7 )   $ 273.9  

Interest expense, net

   ​ ​   ​ ​   ​ ​   ​ ​   ​ (57.4 ) 

Loss on redemption and other debt costs

                             (78.5 )

Gain on acquisition of controlling interest

   ​ ​   ​ ​   ​ ​   ​ ​   ​ 23.5  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income before income taxes

                             $ 161.5  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​