SEGMENT INFORMATION

9 Months Ended

Sep. 30, 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 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 mouldings products, which include extruded vinyl window and door profiles and interior and exterior moulding products; and (ii) 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 for the three and nine month periods ended September 30, 2013 and 2012 are provided in the tables below.

(In millions)	Chlorovinyls			Building Products			Aromatics		Eliminations, Unallocated and Other			Total
Three Months Ended September 30, 2013
Net sales	$	750.0		$	253.4		$	194.1	$	-		$	1,197.5
Intersegment revenues	$	61.8			-			-		(61.8	)	$	-
Total net sales	$	811.8			253.4			194.1		(61.8	)	$	1,197.5
Long-lived asset impairment charges, net	$	-			25.8			-		-		$	25.8
Transaction related costs and other, net	$	1.5			2.9			-		10.4		$	14.8
Operating income (loss)	$	101.6			(6.7	)		5.2		(22.0	)	$	78.1
Depreciation and amortization	$	45.7			9.1			0.3		1.7		$	56.8
Capital expenditures	$	36.0			11.0			2.0		3.9		$	52.9
Three Months Ended September 30, 2012
Net sales	$	329.1		$	246.2		$	238.2	$	-		$	813.5
Intersegment revenues	$	55.7			0.1			-		(55.8	)	$	-
Total net sales	$	384.8			246.3			238.2		(55.8	)	$	813.5
Transaction related costs and other, net	$	1.3		$	0.4			-		13.1		$	14.8
Gain on sale of assets	$	(1.9	)		-			-		-		$	(1.9	)
Operating income	$	73.8			14.7			11.1		(25.7	)	$	73.9
Depreciation and amortization	$	11.5			9.9			0.3		1.3		$	23.0
Capital expenditures	$	7.9			4.7			0.8		1.7		$	15.1

(In millions)	Chlorovinyls			Building Products			Aromatics		Eliminations, Unallocated and Other			Total
Nine Months Ended September 30, 2013
Net sales	$	2,166.3		$	660.0		$	705.2	$	-		$	3,531.5
Intersegment revenues	$	184.8			-			-		(184.8	)	$	-
Total net sales	$	2,351.1			660.0			705.2		(184.8	)	$	3,531.5
Long-lived asset impairment charges, net	$	-			28.4			-		-		$	28.4
Transaction related costs and other, net	$	4.7			2.7			-		26.3		$	33.7
Operating income (loss)	$	311.0			(0.9	)		22.5		(58.7	)	$	273.9
Depreciation and amortization	$	124.7			26.5			0.9		5.0		$	157.1
Capital expenditures	$	74.9			24.1			3.0		6.5		$	108.5
Nine Months Ended September 30, 2012
Net sales	$	998.5		$	685.8		$	856.8	$	-		$	2,541.1
Intersegment revenues	$	194.7			0.4			-		(195.1	)	$	-
Total net sales	$	1,193.2			686.2			856.8		(195.1	)	$	2,541.1
Long-lived asset impairment charges (recoveries), net	$	-			(0.8	)		-		-		$	(0.8	)
Transaction related costs and other, net	$	1.3			0.6			-		25.3		$	27.2
Gain on sale of assets	$	(19.3	)		-			-		-		$	(19.3	)
Operating income	$	160.2			23.7			46.2		(59.6	)	$	170.5
Depreciation and amortization	$	34.0			29.4			1.1		3.5		$	68.0
Capital expenditures	$	32.1			15.1			1.8		6.8		$	55.8

Sales by Product Line

The table below summarizes sales by product line:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2013		2012		2013		2012
Chlorovinyls
Chlor-alkali and derivative products	$	634.3	$	218.2	$	1,806.0	$	643.1
Compound products		115.7		110.9		360.3		355.4
Total		750.0		329.1		2,166.3		998.5
Building Products
Window and door profiles and moulding products		88.2		85.9		237.4		243.7
Outdoor building products		165.2		160.3		422.6		442.1
Total		253.4		246.2		660.0		685.8
Aromatics
Cumene products		118.8		171.7		451.1		605.1
Phenol and acetone products		75.3		66.5		254.1		251.7
Total		194.1		238.2		705.2		856.8
Net Sales	$	1,197.5	$	813.5	$	3,531.5	$	2,541.1