| SEGMENT INFORMATION |
15. 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 compound products (vinyl compounds, compound additives and plasticizers)). 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 (benefit from) 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 six month periods ended June 30, 2015 and 2014 are provided in the tables below.
|
(In millions)
|
|
Chlorovinyls
|
|
Building
Products
|
|
Aromatics
|
|
Eliminations,
Unallocated
and Other
|
|
Total
|
|
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
666.1
|
|
$
|
250.3
|
|
$
|
142.0
|
|
$
|
-
|
|
$
|
1,058.4
|
|
|
Intersegment revenues
|
|
|
61.1
|
|
|
-
|
|
|
-
|
|
|
(61.1
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales
|
|
$
|
727.2
|
|
|
250.3
|
|
|
142.0
|
|
|
(61.1
|
)
|
$
|
1,058.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
37.8
|
|
|
22.6
|
|
|
0.4
|
|
|
(18.0
|
)
|
$
|
42.8
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19.5
|
)
|
|
Foreign exchange loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated income before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
777.9
|
|
$
|
243.8
|
|
$
|
215.2
|
|
$
|
-
|
|
$
|
1,236.9
|
|
|
Intersegment revenues
|
|
|
67.8
|
|
|
-
|
|
|
-
|
|
|
(67.8
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales
|
|
$
|
845.7
|
|
|
243.8
|
|
|
215.2
|
|
|
(67.8
|
)
|
$
|
1,236.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
66.6
|
|
|
14.2
|
|
|
(7.4
|
)
|
|
(15.0
|
)
|
$
|
58.4
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19.1
|
)
|
|
Foreign exchange loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated income before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
39.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2015
|
(In millions)
|
|
Chlorovinyls
|
|
Building
Products
|
|
Aromatics
|
|
Eliminations,
Unallocated
and Other
|
|
Total
|
|
|
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,314.5
|
|
$
|
416.7
|
|
$
|
274.8
|
|
$
|
-
|
|
$
|
2,006.0
|
|
|
Intersegment revenues
|
|
|
117.2
|
|
|
-
|
|
|
-
|
|
|
(117.2
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales
|
|
$
|
1,431.7
|
|
|
416.7
|
|
|
274.8
|
|
|
(117.2
|
)
|
$
|
2,006.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
81.6
|
|
|
12.3
|
|
|
0.7
|
|
|
(36.2
|
)
|
$
|
58.4
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38.3
|
)
|
|
Debt refinancing costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3.2
|
)
|
|
Foreign exchange loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated income before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,460.1
|
|
$
|
398.5
|
|
$
|
372.0
|
|
$
|
-
|
|
$
|
2,230.6
|
|
|
Intersegment revenues
|
|
|
119.7
|
|
|
-
|
|
|
-
|
|
|
(119.7
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales
|
|
$
|
1,579.8
|
|
|
398.5
|
|
|
372.0
|
|
|
(119.7
|
)
|
$
|
2,230.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
89.9
|
|
|
3.4
|
|
|
(2.9
|
)
|
|
(32.4
|
)
|
$
|
58.0
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(37.4
|
)
|
|
Foreign exchange gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated income before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
20.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|