SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2013

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 purposes. Our chlorovinyls segment produces a highly integrated chain of products, including chlor-alkali and derivative products (chlorine, caustic soda, vinyl chloride monomer ("VCM"), vinyl resins, ethylene dichloride, chlorinated solvents, calcium hypochlorite, muriatic acid and phosgene derivatives) and compound products (vinyl compounds, compound additives and plasticizers). The financial results of the Merged Business are included with the chlorovinyls segment from the closing date of the Merger. Our building products segment consists of two primary product groups: window and door profiles and mouldings products, which include extruded vinyl window and door profiles and interior and exterior moulding products; and vinyl-based home improvement and building products. Our aromatics segment is highly integrated and manufactures cumene products and phenol and acetone products (co-products made from cumene).

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 table below.

(In millions)	Chlorovinyls			Building Products			Aromatics		Eliminations, Unallocated and Other			Total
Three Months Ended March 31, 2013:
Net sales	$	614.5		$	162.2		$	284.5	$	-		$	1,061.2
Intersegment revenues	$	58.5			-			-		(58.5	)	$	-
Total net sales	$	673.0			162.2			284.5		(58.5	)	$	1,061.2
Transaction related costs and other, net	$	1.3			(0.3	)		-		9.1		$	10.1
Long-lived asset impairment charges	$	-			2.6			-		-		$	2.6
Operating income (loss)	$	91.3			(13.8	)		13.0		(19.3	)	$	71.2
Depreciation and amortization	$	31.5			8.8			0.3		1.7		$	42.3
Capital expenditures	$	11.3			4.1			0.2		0.8		$	16.4
Three Months Ended March 31, 2012:
Net sales	$	329.5		$	187.2		$	343.2	$	-		$	859.9
Intersegment revenues	$	67.6			0.2			-		(67.8	)	$	-
Total net sales	$	397.1			187.4			343.2		(67.8	)	$	859.9
Transaction related costs and other, net	$	-			0.1			-		5.2		$	5.3
Long-lived asset impairment recovery	$	-			(0.3	)		-		-		$	(0.3	)
Gain on sale of assets	$	(17.4	)		-			-		-		$	(17.4	)
Operating income (loss)	$	51.9			(6.4	)		37.5		(14.8	)	$	68.2
Depreciation and amortization	$	11.1			10.0			0.4		1.1		$	22.6
Capital expenditures	$	5.8			5.9			0.2		1.6		$	13.5

Sales by Product Line

The table below summarizes sales by product line:

	Three Months Ended March 31,
(In millions)	2013		2012
Chlorovinyls
Chlor-alkali and derivative products	$	488.6	$	207.5
Compound products		125.9		122.0
Total		614.5		329.5
Building Products
Window and door profiles and moulding products		63.0		66.8
Outdoor building products		99.2		120.4
Total		162.2		187.2
Aromatics
Cumene products		170.1		251.8
Phenol and acetone products		114.4		91.4
Total		284.5		343.2
Net sales	$	1,061.2	$	859.9