SEGMENT INFORMATION

12 Months Ended

Dec. 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 (or 1, 2 dichloroethane) ("EDC"), chlorinated solvents, calcium hypochlorite, hydrochloric acid ("HCL") and phosgene derivatives) and compound products (vinyl compounds and compound additives and plasticizers). The financial results of the Merged Business are included with the chlorovinyls segment from January 28, 2013, the closing date of the merger. Our building products segment consists of two primary product groups: (i) window and door profiles and trim, mouldings and deck products; and (ii) outdoor building products, which currently includes siding, exterior accessories, pipe and pipe fittings. Our aromatics segment 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 for the years ended December 31, 2013, 2012 and 2011 are provided in the tables below.

Identifiable assets consist of property, plant and equipment used in the operations of the segment as well as inventory, receivables and other assets directly related to the segment. Unallocated and other assets include cash, certain corporate receivables and data processing equipment. The accounting policies of the reportable segments are the same as those described in Note 1, Summary of Significant Accounting Policies and Nature of the Business.

(In millions)	Chlorovinyls			Building Products			Aromatics		Eliminations, Unallocated and Other				Total
Year Ended December 31, 2013
Net sales	$	2,917.3		$	849.9		$	898.8	$	-			$	4,666.0
Intersegment revenues	$	226.2			0.1			-		(226.3	)		$	-
Total net sales	$	3,143.5			850.0			898.8		(226.3	)		$	4,666.0
Transaction related costs and other, net	$	(8.7	)		3.2			-		41.1			$	35.6
Long-lived asset impairment charges, net	$	-			28.5			-		7.5			$	36.0
Operating income	$	434.9			3.0			29.1		(96.2	)	(1)	$	370.8
Depreciation and amortization	$	174.2			35.7			1.2		6.9			$	218.0
Capital expenditures	$	132.7			44.4			7.1		11.9			$	196.1
Total assets	$	5,074.0			577.8			146.8		78.6			$	5,877.2
Year Ended December 31, 2012:
Net sales	$	1,344.9		$	876.6		$	1,104.3	$	-			$	3,325.8
Intersegment revenues	$	236.1			0.4			-		(236.5	)		$	-
Total net sales	$	1,581.0			877.0			1,104.3		(236.5	)		$	3,325.8
Transaction related costs and other, net	$	1.3			1.5			-		36.1			$	38.9
Long-lived asset impairment charges, net	$	-			(0.8	)		-		-			$	(0.8	)
Gain on sale of assets	$	(19.3	)		-			-		-			$	(19.3	)
Operating income	$	237.2			18.4			64.6		(82.1	)	(1)	$	238.1
Depreciation and amortization	$	45.2			38.4			1.5		4.7			$	89.8
Capital expenditures	$	44.7			24.9			2.7		8.0			$	80.3
Total assets	$	966.4			604.5			180.1		50.3			$	1,801.3
Year Ended December 31, 2011:
Net sales	$	1,318.7		$	883.9		$	1,020.3	$	-			$	3,222.9
Intersegment revenues	$	235.7			-			-		(235.7	)		$	-
Total net sales	$	1,554.4			883.9			1,020.3		(235.7	)		$	3,222.9
Transaction related costs and other, net	$	0.5			2.8			-		-			$	3.3
Long-lived asset impairment charges, net	$	-			8.3			-		-			$	8.3
Gain on sale of assets	$	(1.1	)		-			-		-			$	(1.1	)
Operating income	$	143.3			7.5			10.4		(36.6	)	(1)	$	124.6
Depreciation and amortization	$	56.0			39.7			1.5		4.3			$	101.5
Capital expenditures	$	37.1			23.8			1.6		3.9			$	66.4
Total assets	$	874.6			606.4			121.3		41.9			$	1,644.2

⁽¹⁾

Includes shared services, administrative and legal expenses.

Sales by Product Line

The table below summarizes sales by product line for the years ended December 31, 2013, 2012 and 2011.

	Year Ended December 31,
(In millions)	2013		2012		2011
Chlorovinyls
Chlor-alkali and derivative products	$	2,447.2	$	886.2	$	888.3
Compound products		470.1		458.7		430.4
Total		2,917.3		1,344.9		1,318.7
Building Products
Window and door profiles and moulding products		314.4		319.1		331.0
Outdoor building products		535.5		557.5		552.9
Total		849.9		876.6		883.9
Aromatics
Cumene products		569.8		763.5		603.8
Phenol and acetone products		329.0		340.8		416.5
Total		898.8		1,104.3		1,020.3
Net Sales	$	4,666.0	$	3,325.8	$	3,222.9

Geographic Areas

Sales are attributable to geographic areas based on customer location and were as follows for the years ended December 31, 2013, 2012 and 2011.

	Year Ended December 31,
(In millions)	2013		2012		2011
Net sales:
United States	$	3,748.1	$	2,625.7	$	2,450.4
Non-U.S.		917.9		700.1		772.5
Net Sales	$	4,666.0	$	3,325.8	$	3,222.9

Export sales as a percentage of net sales were approximately 20 percent, 21 percent and 24 percent for the years ended December 31, 2013, 2012 and 2011, respectively. Based on destination, the principal international markets we serve are Canada and Asia. Net sales to Canada in 2013 were 12 percent of net sales as compared to 16 percent and 17 percent of net sales in 2012 and 2011, respectively.

Long-lived assets, excluding intangible assets, are based on asset location. As of December 31, 2013 and 2012, our long-lived assets, excluding intangible assets, by geographic areas were as follows:

	December 31,
(In millions)	2013		2012
Long-lived assets (excluding intangible assets):
United States	$	1,335.4	$	423.5
Non-U.S.		323.3		214.2
Total	$	1,658.7	$	637.7

Net assets (liabilities) are attributable to geographic areas based on the location of the legal entity. Net assets (liabilities) by geographic locations as of December 31, 2013 and 2012 were as follows:

	December 31,
(In millions)	2013		2012
Net assets (liabilities):
United States	$	2,375.3	$	699.6
Non-U.S.		353.0		(96.1	)
Total	$	2,728.3	$	603.5