SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2014

SEGMENT INFORMATION

SEGMENT INFORMATION

16. 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 the purpose of allocating resources, assessing performance and for internal reporting. 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, 2014, 2013 and 2012 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 of the Notes to the Consolidated Financial Statements.

(In millions)	Chlorovinyls			Building Products			Aromatics			Eliminations, Unallocated and Other				Total
Year Ended December 31, 2014
Net sales	$	2,930.2		$	878.6		$	759.9		$	-			$	4,568.7
Intersegment revenues		255.7			0.1			-			(255.8	)			-
Total net sales	$	3,185.9			878.7			759.9			(255.8	)		$	4,568.7
Transaction-related costs and other, net	$	6.3			6.3			-			25.8			$	38.4
Long-lived asset impairment charges, net	$	16.6			1.0			-			-			$	17.6
Depreciation and amortization	$	200.3			34.5			2.0			9.7			$	246.5
Operating income (loss)	$	213.9			25.8			(20.7	)		(84.9	)	(1)	$	134.1
Interest expense, net															(75.8	)
Foreign exchange loss															(0.6	)
Income before income taxes														$	57.7
Capital expenditures	$	145.7			40.6			11.2			13.0			$	210.5
Total assets	$	4,872.0			581.3			119.0			102.0			$	5,674.3
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 (recoveries) and other, net	$	(8.7	)		3.2			-			41.1			$	35.6
Long-lived asset impairment charges, net	$	-			28.5			-			7.5			$	36.0
Depreciation and amortization	$	174.2			35.7			1.2			6.9			$	218.0
Operating income (loss)	$	434.9			3.0			29.1			(96.2	)	(1)	$	370.8
Interest expense, net															(76.6	)
Loss on redemption and other debt costs															(78.5	)
Gain on acquisition of controlling interest															25.9
Income before income taxes														$	241.6
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	)
Depreciation and amortization	$	45.2			38.4			1.5			4.7			$	89.8
Gain on sale of assets	$	(19.3	)		-			-			-			$	(19.3	)
Operating income	$	237.2			18.4			64.6			(82.1	)	(1)	$	238.1
Interest expense, net															(57.1	)
Loss on redemption and other debt costs															(2.7	)
Foreign exchange loss															(0.6	)
Income before income taxes														$	177.7
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

(1) Includes shared services, administrative and legal expenses.

Net Sales by Product Line

The table below summarizes net sales by product line for the years ended December 31, 2014, 2013 and 2012.

	Year Ended December 31,
(In millions)	2014		2013		2012
Chlorovinyls
Chlor-alkali and derivative products	$	2,435.3	$	2,447.2	$	886.2
Compound products		494.9		470.1		458.7
Total		2,930.2		2,917.3		1,344.9
Building Products
Window and door profiles and moulding products		314.5		314.4		319.1
Outdoor building products		564.1		535.5		557.5
Total		878.6		849.9		876.6
Aromatics
Cumene products		499.2		569.8		763.5
Phenol and acetone products		260.7		329.0		340.8
Total		759.9		898.8		1,104.3
Net Sales	$	4,568.7	$	4,666.0	$	3,325.8

Geographic Areas

Sales are attributable to geographic areas based on customer location and were as follows for the years ended December 31, 2014, 2013 and 2012.

	Year Ended December 31,
(In millions)	2014		2013		2012
Net sales:
United States	$	3,663.0	$	3,748.1	$	2,625.7
Non-U.S.		905.7		917.9		700.1
Net Sales	$	4,568.7	$	4,666.0	$	3,325.8

Export sales as a percentage of net sales were approximately 20 percent, 20 percent and 21 percent for the years ended December 31, 2014, 2013 and 2012, respectively. Based on destination, the principal international markets we serve are Canada and Asia. Net sales to Canada in 2014 were 12 percent of net sales as compared to 12 percent and 16 percent of net sales in 2013 and 2012, respectively.

Long-lived assets, excluding intangible assets, are based on asset location. As of December 31, 2014 and 2013, our long-lived assets, excluding intangible assets, by geographic areas were as follows:

	December 31,
(In millions)	2014		2013
Long-lived assets (excluding intangible assets):
United States	$	1,379.7	$	1,335.4
Non-U.S.		286.0		323.3
Total	$	1,665.7	$	1,658.7

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, 2014 and 2013 were as follows:

	December 31,
(In millions)	2014		2013
Net assets (liabilities):
United States	$	2,255.2	$	2,375.3
Non-U.S.		333.8		353.0
Total	$	2,589.0	$	2,728.3