SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2012

SEGMENT INFORMATION

SEGMENT INFORMATION

17. 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. The chlorovinyls segment consists of a highly integrated chain of electrovinyl products, which includes chlorine, caustic soda, VCM and vinyl resins, and our compound products consisting of compound additives and vinyl compounds. Our vinyl-based building and home improvement products, including window and door profiles and mouldings products and outdoor building products currently consisting of siding, pipe and pipe fittings and deck and rail products are marketed under the Royal Building Products and Exterior Portfolio brand names, and are managed within the building products segment. The aromatics segment is also integrated and includes the product cumene and the co-products phenol and acetone.

        Earnings of our segments exclude interest income and expense, unallocated corporate expenses and general plant services, and provision for income taxes. Transactions between operating segments are valued at market based prices. The revenues generated by these transfers are provided in the following table.

        The accounting policies applicable to the reportable segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements in our 2011 Annual Report.

(In thousands)	Chlorovinyls			Aromatics			Building Products			Eliminations, Unallocated and Other			Total
Three months ended June 30, 2012:
Net sales	$	339,861		$	275,479		$	252,373		$	—		$	867,713
Intersegment revenues		73,210			—			137			(73,347	)		—
Transaction related costs, restructuring and other, net		—			—			(471	)		7,116			6,645
Operating income (loss)		34,461			(2,392	)		15,429			(19,098	)		28,400
Depreciation and amortization		11,375			378			9,484			1,136			22,373
Three months ended June 30, 2011:
Net sales	$	323,663		$	233,892		$	274,156		$	—		$	831,711
Intersegment revenues		70,439			—			—			(70,439	)		—
Gain on sale of assets		(1,150	)		—			—			—			(1,150	)
Transaction related costs, restructuring and other, net		—			—			443			—			443
Operating income (loss)		37,826			(7,448	)		16,891			(11,759	)		35,510
Depreciation and amortization		14,582			353			10,390			1,067			26,392

(In thousands)	Chlorovinyls			Aromatics		Building Products			Eliminations, Unallocated and Other			Total
Six months ended June 30, 2012:
Net sales	$	669,374		$	618,656	$	439,612		$	—		$	1,727,642
Intersegment revenues		138,978			—		314			(139,292	)		—
Gain on sale of assets		(17,386	)		—		—			—			(17,386	)
Transaction related costs, restructuring and other, net		—			—		(719	)		12,300			11,581
Operating income (loss)		86,378			35,164		9,004			(33,891	)		96,655
Depreciation and amortization		22,483			761		19,478			2,253			44,975
Six months ended June 30, 2011:
Net sales	$	649,983		$	538,005	$	431,660		$	—		$	1,619,648
Intersegment revenues		134,700			—		3			(134,703	)		—
Gain on sale of assets		(1,150	)		—		—			—			(1,150	)
Transaction related costs, restructuring and other, net		635			—		390			—			1,025
Operating income (loss)		75,565			12,334		4,825			(20,573	)		72,151
Depreciation and amortization		29,181			713		19,749			2,199			51,842

Sales by Product Line

        The table below summarizes sales by product. Our electrovinyls products are primarily comprised of chlorine/caustic soda, VCM and vinyl resins. Our compound products are comprised of vinyl compounds and compound additives. Our outdoor building products are comprised of siding, pipe and pipe fittings, deck and rail.

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2012		2011		2012		2011
Chlorovinyls
Electrovinyl products	$	217,302	$	209,794	$	424,860	$	428,563
Compound products		122,559		113,869		244,514		221,420
Total		339,861		323,663		669,374		649,983
Aromatics
Cumene products		181,699		138,064		433,457		318,810
Phenol/acetone products		93,780		95,828		185,199		219,195
Total		275,479		233,892		618,656		538,005
Building Products
Window & Door Profiles and Moulding products		90,985		95,635		157,782		160,808
Outdoor Building products		161,388		178,521		281,830		270,852
Total		252,373		274,156		439,612		431,660
Total net sales	$	867,713	$	831,711	$	1,727,642	$	1,619,648