Segment And Geographic Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

Segment Information

The Company operates in two principal operating 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.

The Company's Olefins segment manufactures and markets polyethylene, styrene monomer and various ethylene co-products. The Company's ethylene production is used in the Company's polyethylene, styrene and vinyl chloride monomer ("VCM") operations. In addition, the Company sells ethylene and ethylene co-products, primarily propylene, crude butadiene, pyrolysis gasoline and hydrogen, to external customers.

The majority of sales in the Company's Olefins business are made under long-term agreements where contract volumes are established within a range (typically, more than one year). Earlier terminations may occur if the parties fail to agree on price and deliveries are suspended for a period of several months. In most cases, these contracts also contemplate extension of the term unless specifically terminated by one of the parties. No single customer accounted for more than 10% of sales in the Olefins segment for the years ended December 31, 2013, 2012 or 2011.

The Company's Vinyls segment manufactures and markets PVC, VCM, EDC, chlorine, caustic soda and ethylene. The Company also manufactures and sells products fabricated from PVC that the Company produces, including pipe, fittings, profiles, foundation building products, window and door profiles and fence. The Company's main manufacturing complex is located in Calvert City. It includes an ethylene plant, a chlor-alkali plant, a VCM plant and a PVC plant. The Company also operates a PVC and VCM manufacturing facility in Geismar, Louisiana. In addition, on December 27, 2013, the Company announced the start-up of its new chlor-alkali plant at the Geismar complex. Further, the Company owns a 59% interest in a PVC joint venture in China.

The Company uses its chlorine, VCM and PVC production to manufacture building products at the Company's 12 regional plants. No single customer accounted for more than 10% of sales in the Vinyls segment for the years ended December 31, 2013, 2012 or 2011.

The accounting policies of the individual segments are the same as those described in Note 1.

	Year Ended December 31,
	2013			2012			2011
Net external sales
Olefins
Polyethylene	$	1,750,292		$	1,658,551		$	1,772,144
Styrene, feedstock and other	803,377			841,427			795,698
Total olefins	2,553,669			2,499,978			2,567,842
Vinyls
PVC, caustic soda and other	800,658			743,275			757,314
Building products	405,157			327,788			294,692
Total vinyls	1,205,815			1,071,063			1,052,006
	$	3,759,484		$	3,571,041		$	3,619,848
Intersegment sales
Olefins	$	320,909		$	318,322		$	444,889
Vinyls	1,502			1,603			1,474
	$	322,411		$	319,925		$	446,363
Income (loss) from operations
Olefins	$	833,249		$	552,762		$	459,266
Vinyls	154,684			85,942			4,012
Corporate and other	(34,469		)	(23,353		)	(16,482		)
	$	953,464		$	615,351		$	446,796
Depreciation and amortization
Olefins	$	102,938		$	97,906		$	86,915
Vinyls	54,371			46,146			43,877
Corporate and other	499			489			605
	$	157,808		$	144,541		$	131,397
Other income (expense), net
Olefins	$	7,410		$	3,899		$	2,813
Vinyls	(1,858		)	(965		)	194
Corporate and other	1,238			586			2,621
	$	6,790		$	3,520		$	5,628
Provision for (benefit from) income taxes
Olefins	$	288,214		$	177,176		$	149,033
Vinyls	48,296			22,389			(2,193		)
Corporate and other	(4,763		)	49			(4,374		)
	$	331,747		$	199,614		$	142,466
Capital expenditures
Olefins	$	145,542		$	135,886		$	90,641
Vinyls	531,939			246,827			84,192
Corporate and other	1,741			4,169			2,010
	$	679,222		$	386,882		$	176,843

	December 31, 2013		December 31, 2012
Total assets
Olefins	$	1,557,510	$	1,439,308
Vinyls	1,740,595		1,030,912
Corporate and other	762,804		941,976
	$	4,060,909	$	3,412,196

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

	Year Ended December 31,
	2013			2012			2011
Income from operations for reportable segments	$	953,464		$	615,351		$	446,796
Interest expense	(18,082		)	(43,049		)	(50,992		)
Debt retirement costs	—			(7,082		)	—
Gain from sales of equity securities	—			16,429			—
Other income, net	6,790			3,520			5,628
Income before income taxes	$	942,172		$	585,169		$	401,432

Geographic Information

	Year Ended December 31,
	2013		2012		2011
Sales to external customers (1)
United States	$	3,404,378	$	3,176,202	$	3,221,562
Foreign
Canada	214,162		294,643		247,357
Switzerland	54,637		32,927		19,922
Singapore	24,028		15,308		29,210
Other	62,279		51,961		101,797
	$	3,759,484	$	3,571,041	$	3,619,848

	December 31, 2013		December 31, 2012
Long-lived assets
United States	$	2,081,091	$	1,502,902
Foreign	6,923		7,146
	$	2,088,014	$	1,510,048

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(1) Revenues are attributed to countries based on location of customer.