Segment And Geographic Information

12 Months Ended

Dec. 31, 2014

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, 2014, 2013 or 2012.

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 components and fence and deck components. The Company's main North American chemical manufacturing facilities are located in Calvert City and Geismar, Louisiana. The Company also has five manufacturing sites in Germany and one manufacturing site in the United Kingdom. Further, the Company owns a 59% interest in a PVC joint venture in China. Subsequent to December 31, 2014, the Company entered into an agreement to acquire an additional 35.7% interest in this joint venture. See Note 22 for additional information.

As of December 31, 2014, the Company owned 12 building products plants. The Company uses its chlorine, VCM and PVC production to manufacture its building products. No single customer accounted for more than 10% of sales in the Vinyls segment for the years ended December 31, 2014, 2013 or 2012.

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

	Year Ended December 31,
	2014			2013			2012
Net external sales
Olefins
Polyethylene	$	1,922,535		$	1,750,292		$	1,658,551
Styrene, feedstock and other	801,155			803,377			841,427
Total olefins	2,723,690			2,553,669			2,499,978
Vinyls
PVC, caustic soda and other	1,203,332			800,658			743,275
Building products	488,328			405,157			327,788
Total vinyls	1,691,660			1,205,815			1,071,063
	$	4,415,350		$	3,759,484		$	3,571,041
Intersegment sales
Olefins	$	146,539		$	320,909		$	318,322
Vinyls	1,385			1,502			1,603
	$	147,924		$	322,411		$	319,925
Income (loss) from operations
Olefins	$	1,013,825		$	833,249		$	552,762
Vinyls	142,740			154,684			85,942
Corporate and other	(32,574		)	(34,469		)	(23,353		)
	$	1,123,991		$	953,464		$	615,351
Depreciation and amortization
Olefins	$	106,244		$	102,938		$	97,906
Vinyls	101,666			54,371			46,146
Corporate and other	576			499			489
	$	208,486		$	157,808		$	144,541
Other income (expense), net
Olefins	$	6,102		$	7,410		$	3,899
Vinyls	2,680			(1,858		)	(965		)
Corporate and other	(11,503		)	1,238			586
	$	(2,721	)	$	6,790		$	3,520
Provision for (benefit from) income taxes
Olefins	$	354,159		$	288,214		$	177,176
Vinyls	52,249			48,296			22,389
Corporate and other	(7,506		)	(4,763		)	49
	$	398,902		$	331,747		$	199,614
Capital expenditures
Olefins	$	188,729		$	145,542		$	135,886
Vinyls	237,992			531,939			246,827
Corporate and other	4,383			1,741			4,169
	$	431,104		$	679,222		$	386,882

	December 31, 2014		December 31, 2013
Total assets
Olefins	$	1,785,895	$	1,557,510
Vinyls	2,618,646		1,740,595
Corporate and other	809,449		762,804
	$	5,213,990	$	4,060,909

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

	Year Ended December 31,
	2014			2013			2012
Income from operations for reportable segments	$	1,123,991		$	953,464		$	615,351
Interest expense	(37,352		)	(18,082		)	(43,049		)
Debt retirement costs	—			—			(7,082		)
Gain from sales of equity securities	—			—			16,429
Other (expense) income, net	(2,721		)	6,790			3,520
Income before income taxes	$	1,083,918		$	942,172		$	585,169

Geographic Information

	Year Ended December 31,
	2014		2013		2012
Sales to external customers (1)
United States	$	3,596,091	$	3,404,378	$	3,176,202
Foreign
Canada	217,567		214,162		294,643
Germany	198,921		3,942		2,392
Switzerland	89,214		54,637		32,927
Other	313,557		82,365		64,877
	$	4,415,350	$	3,759,484	$	3,571,041

	December 31, 2014		December 31, 2013
Long-lived assets
United States	$	2,319,572	$	2,081,091
Foreign
Germany	417,702		—
Other	20,283		6,923
	$	2,757,557	$	2,088,014

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