SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2012

SEGMENT INFORMATION

15. SEGMENT INFORMATION

Segment realignment

In the first quarter of 2012, we announced that we had retained an advisor to help us explore the potential separation of our Coating Resins segment, along with the pressure sensitive adhesives (“PSA”) product line and certain methyl acrylamide (“NMA”) product groups. In light of this potential separation, we realigned our segment reporting (internal and external) and management structure accordingly. PSA and NMA, which previously were included in our Engineered Materials and Additive Technologies segments, respectively, became part of our Coating Resins segment. Concurrently, to align the segments with our revised management structure and operating model, we also moved the formulated resins product line out of the Engineered Materials segment into the Additive Technologies segment. We believe our new strategy, which realigned our reportable segments, will enable us to develop a more sustainable portfolio in the future that will drive earnings growth and a better return on our assets.

As discussed in Note 5, the former Building Block Chemicals and Coating Resins segments are reported as discontinued operations for all periods presented. Summarized segment information for our three continuing segments for the three and six months ended June 30 is as follows:

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Net Sales:
Engineered Materials	$	229.7		$	190.0		$	448.4		$	377.0
In-Process Separation		100.2			81.9			191.8			160.3
Additive Technologies
Sales to external customers		74.1			75.4			141.8			145.7
Intersegment sales		0.3			0.4			0.5			0.7
Net sales from segments		404.3			347.7			782.5			683.7
Elimination of intersegment revenue		(0.3	)		(0.4	)		(0.5	)		(0.7	)
Total consolidated net sales	$	404.0		$	347.3		$	782.0		$	683.0

	2012			% of Sales			2011			% of Sales			2012			% of Sales			2011			% of Sales
Earnings from operations:
Engineered Materials	$	38.7			17	%	$	28.1			15	%	$	83.7			19	%	$	53.2			14	%
In-Process Separation		27.1			27	%		15.6			19	%		50.0			26	%		32.0			20	%
Additive Technologies		13.7			18	%		10.6			14	%		20.1			14	%		19.1			13	%
Earnings from segments		79.5			20	%		54.3			16	%		153.8			20	%		104.3			15	%
Corporate and Unallocated, net (1)		(35.0	)					(22.1	)					(57.6	)					(40.9	)
Total earnings from operations	$	44.5			11	%	$	32.2			9	%	$	96.2			12	%	$	63.4			9	%

(1) For the three and six months ended June 30, 2012, corporate and unallocated includes restructuring charges of $11.6 and $11.4, respectively, across corporate functions to mitigate continuing costs following the anticipated sale of Coating Resins, charges of $2.9 related to costs incurred for the acquisition of Umeco, and accelerated depreciation of $0.7 and $1.3, respectively, for the sale of our Stamford facility treated as a financing transaction. For the three and six months ended June 30, 2011, Corporate and Unallocated includes net pre-tax charges of $0.3 and $0.4, respectively, for restructuring charges, and a gain on the sale of assets of a certain Latin American subsidiary for $3.3 for the six months ended June 30, 2011. Corporate and unallocated also included costs previously allocated to the operations of our discontinued Coating Resins segment of $17.6 and $34.8 for three and six months ended June 30, 2012, and $17.5 and $34.6 for three and six months ended June 30, 2011. It also included costs previously allocated to the operations of our discontinued Building Block Chemicals segment of $0.0 and $1.0 for three and six months ended June 30, 2011.