Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

15. Segment Information

The Company operates in two principal business segments: Olefins and Vinyls. These segments are strategic business units that offer a variety of different products. The Company manages each segment separately as each business requires different technology and marketing strategies.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Net sales to external customers
Olefins
Polyethylene	$	444,077		$	422,036		$	1,358,631		$	1,244,467
Ethylene, styrene and other		251,597			133,121			587,438			453,041
Total Olefins		695,674			555,157			1,946,069			1,697,508
Vinyls
PVC, caustic soda and other		198,046			134,411			583,214			401,330
Building products		74,652			90,109			231,390			277,562
Total Vinyls		272,698			224,520			814,604			678,892
	$	968,372		$	779,677		$	2,760,673		$	2,376,400
Intersegment sales
Olefins	$	109,140		$	85,670		$	327,584		$	205,846
Vinyls		376			248			1,100			770
	$	109,516		$	85,918		$	328,684		$	206,616
Income (loss) from operations
Olefins	$	105,353		$	136,103		$	383,376		$	305,506
Vinyls		16,123			(24,233	)		23,565			(50,049	)
Corporate and other		(4,145	)		(4,524	)		(10,604	)		(14,145	)
	$	117,331		$	107,346		$	396,337		$	241,312
Depreciation and amortization
Olefins	$	21,746		$	21,662		$	64,998		$	64,363
Vinyls		10,967			10,395			32,782			31,522
Corporate and other		148			144			464			437
	$	32,861		$	32,201		$	98,244		$	96,322
Other income (expense), net
Olefins	$	949		$	33		$	2,033		$	107
Vinyls		(303	)		329			179			304
Corporate and other		811			260			2,084			1,125
	$	1,457		$	622		$	4,296		$	1,536
Provision for (benefit from) income taxes
Olefins	$	34,867		$	44,423		$	128,405		$	96,112
Vinyls		5,277			(9,579	)		5,847			(17,600	)
Corporate and other		(2,013	)		(609	)		(4,591	)		(1,558	)
	$	38,131		$	34,235		$	129,661		$	76,954
Capital expenditures
Olefins	$	26,570		$	8,617		$	59,969		$	23,572
Vinyls		15,447			11,238			50,454			26,744
Corporate and other		628			296			1,400			921
	$	42,645		$	20,151		$	111,823		$	51,237

In the first quarter of 2011, in order to better reflect large buyer market related pricing, the Company changed its intersegment market pricing methodology used to account for intersegment sales of ethylene sold from the Olefins segment to the Vinyls segment. Had this pricing methodology been in effect on January 1, 2010, the impact on Olefins segment income from operations for the three and nine months ended September 30, 2010 would be a reduction of $5,948 and $23,642, respectively. These reductions would be offset by an improvement in the Vinyls segment's operating results for the three and nine months ended September 30, 2010 of $4,560 and $19,697, respectively, and an improvement in the Corporate segment's operating results for the three and nine months ended September 30, 2010 of $1,388 and $3,945, respectively. The improvement in the Corporate segment's loss from operations is attributable to a reduction in intercompany profit in inventory reserve related to sales from the Olefins segment to the Vinyls segment. There would be no impact on the Company's reported consolidated income from operations for the three and nine months ended September 30, 2010.

A reconciliation of total segment income from operations to consolidated income before income taxes is as follows:

		$3,207,179			$3,207,179			$3,207,179			$3,207,179
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Income from operations	$	117,331		$	107,346		$	396,337		$	241,312
Interest expense		(12,727	)		(11,002	)		(38,449	)		(28,574	)
Other income, net		1,457			622			4,296			1,536
Income before income taxes	$	106,061		$	96,966		$	362,184		$	214,274

		$1,433,787		$1,433,787
	September 30, 2011		December 31, 2010
Total assets
Olefins	$	1,433,787	$	1,372,785
Vinyls		800,871		767,875
Corporate and other		972,521		813,484
	$	3,207,179	$	2,954,144