Segment and Geographic Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

Segment Information

The Company operates in two principal operating segments: Vinyls and Olefins. 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 Vinyl segment manufactures and markets PVC, VCM, ethylene dichloride ("EDC"), chlor-alkali (chlorine and caustic soda), chlorinated derivative products and ethylene. The Company also manufactures and sells building products fabricated primarily from PVC, including residential siding, trim and mouldings, pipe and fittings for various water, sewer and industrial applications, profiles for windows and doors, decking products, film for various inflatables, wall covering tapes, roofing applications and composite roof tiles. The Company's primary North American chemical manufacturing facilities are located in its Calvert City, Kentucky and Lake Charles, Plaquemine and Geismar, Louisiana sites. The Company also produces chlorine, caustic soda, hydrogen and chlorinated derivative products at its facilities in Natrium, Longview, Washington and Beauharnois, Quebec and PVC resin and PVC compounds at several facilities in Mississippi. In addition to North America, the Company also has manufacturing facilities in Europe and Asia.

As of December 31, 2020, the Company owned 37 building products and PVC compound facilities. The Company primarily 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, 2020, 2019 or 2018.

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 VCM operations. In addition, the Company sells ethylene and ethylene co-products, primarily propylene, crude butadiene, pyrolysis gasoline and hydrogen, to external customers.

No single customer accounted for more than 10% of sales in the Olefins segment for the years ended December 31, 2020, 2019 or 2018.

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

	Year Ended December 31,
	2020		2019		2018
Net external sales
Vinyls
PVC, caustic soda and other	$	4,570	$	5,068	$	5,359
Building products	1,402		1,268		1,257
Total vinyls	5,972		6,336		6,616
Olefins
Polyethylene	1,226		1,301		1,519
Styrene, feedstock and other	306		481		500
Total olefins	1,532		1,782		2,019
	$	7,504	$	8,118	$	8,635
Intersegment sales
Vinyls	$	1	$	1	$	2
Olefins	276		324		500
	$	277	$	325	$	502
Income (loss) from operations
Vinyls	$	301	$	451	$	913
Olefins	160		260		573
Corporate and other	(32)		(55)		(78)
	$	429	$	656	$	1,408
Depreciation and amortization
Vinyls	$	626	$	563	$	491
Olefins	139		142		138
Corporate and other	8		8		12
	$	773	$	713	$	641
Other income, net
Vinyls	$	30	$	18	$	35
Olefins	4		5		4
Corporate and other	10		15		13
	$	44	$	38	$	52
Provision for (benefit from) income taxes
Vinyls	$	(93)	$	40	$	212
Olefins	38		60		128
Corporate and other	13		8		(40)
	$	(42)	$	108	$	300
Capital expenditures
Vinyls	$	443	$	664	$	585
Olefins	74		117		110
Corporate and other	8		6		7
	$	525	$	787	$	702

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

	Year Ended December 31,
	2020		2019		2018
Income from operations for reportable segments	$	429	$	656	$	1,408
Interest expense	(142)		(124)		(126)
Other income, net	44		38		52
Income before income taxes	$	331	$	570	$	1,334

	December 31, 2020		December 31, 2019
Total assets
Vinyls	$	10,680	$	10,597
Olefins	1,923		1,991
Corporate and other	1,232		673
	$	13,835	$	13,261

Geographic Information

	Year Ended December 31,
	2020		2019		2018
Net sales to external customers (1)
United States	$	5,100	$	5,530	$	6,114
Foreign
Canada	601		573		649
Germany	458		478		500
China	173		175		155
Italy	103		119		105
Taiwan	74		84		102
Other	995		1,159		1,010
	$	7,504	$	8,118	$	8,635

	December 31, 2020		December 31, 2019
Long-lived assets
United States	$	5,930	$	6,012
Foreign
Germany	666		588
Other	324		312
	$	6,920	$	6,912

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