| SEGMENT INFORMATION |
NOTE 16. SEGMENT INFORMATION The chief operating decision maker (CODM) is the individual, or group of individuals, who assess financial performance and determines resource allocation. Management has identified our Chief Executive Officer (CEO) as the CODM. In arriving at this conclusion, we considered that the individual who receives the relevant financial information, which is primarily provided in the form of segment operations reviews, is ultimately our CEO. Further, our CEO assesses the reasonableness of resource allocation, primarily in the form of capital allocation and budgetary analysis, and reviews segment results and resource allocation summaries prepared by segment management, consistent with their view of the business as a whole. We define segment results as income (loss) before interest expense, net, other operating income (expense), non-operating pension income, other income and income taxes, and includes the results of non-consolidated affiliates in segment results consistent with management’s monitoring of the operating segments. We have three operating segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester. The three operating segments reflect the organization used by our management for purposes of allocating resources and assessing performance and represents our reportable segments. Chlorine and caustic soda used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment. Cost of goods sold at Corporate is primarily attributed to environmental expense. Other segment items for each reportable segment include selling and administrative expenses and earnings (losses) from non-consolidated affiliates. Segment assets include only those assets which are directly identifiable to an operating segment. Assets in the corporate/other segment primarily include cash and cash equivalents, deferred taxes and other assets. Sales are attributed to geographic areas based on the customer location. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | Chlor Alkali Products and Vinyls | | Epoxy | | Winchester | | Corporate & Other | | Totals | | Segment Detail | ($ in millions) | | Sales | $ | 819.5 | | | $ | 422.1 | | | $ | 500.3 | | | $ | — | | | $ | 1,741.9 | | | Cost of goods sold | 726.5 | | | 391.3 | | | 447.2 | | | 6.7 | | | 1,571.7 | | | Gross margin | 93.0 | | | 30.8 | | | 53.1 | | | (6.7) | | | 170.2 | | | Other segment items | (39.6) | | | (14.8) | | | (25.0) | | | (24.3) | | | (103.7) | | | Restructuring charges | — | | | — | | | — | | | (10.5) | | | (10.5) | | | Acquisition-related costs | — | | | — | | | — | | | (10.6) | | | (10.6) | | | Other operating income | — | | | — | | | — | | | 0.1 | | | 0.1 | | | Interest expense, net | — | | | — | | | — | | | (44.3) | | | (44.3) | | | Non-operating pension income | — | | | — | | | — | | | 2.6 | | | 2.6 | | | | | | | | | | | | | Income (loss) before taxes | $ | 53.4 | | | $ | 16.0 | | | $ | 28.1 | | | $ | (93.7) | | | $ | 3.8 | | | | | | | | | | | | | Other Items | | | | | | | | | | | Depreciation and amortization expense | $ | 98.1 | | | $ | 11.7 | | | $ | 8.8 | | | $ | 3.5 | | | $ | 122.1 | | | Capital spending | 19.2 | | | 2.1 | | | 6.7 | | | 1.0 | | | 29.0 | | | Assets | 5,118.1 | | | 934.1 | | | 833.1 | | | 555.3 | | | 7,440.6 | | | Segment Sales by Geography | | | | | | | | | | | United States | $ | 558.4 | | | $ | 196.8 | | | $ | 455.8 | | | $ | — | | | $ | 1,211.0 | | | Europe | 35.1 | | | 102.3 | | | 29.6 | | | — | | | 167.0 | | | Other foreign | 226.0 | | | 123.0 | | | 14.9 | | | — | | | 363.9 | | | Total sales | $ | 819.5 | | | $ | 422.1 | | | $ | 500.3 | | | $ | — | | | $ | 1,741.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | Chlor Alkali Products and Vinyls | | Epoxy | | Winchester | | Corp/Other | | Totals | | Segment Detail | ($ in millions) | | Sales | $ | 1,576.4 | | | $ | 777.7 | | | $ | 970.8 | | | $ | — | | | $ | 3,324.9 | | | Cost of goods sold | 1,453.6 | | | 734.4 | | | 877.7 | | | 13.2 | | | 3,078.9 | | | Gross margin | 122.8 | | | 43.3 | | | 93.1 | | | (13.2) | | | 246.0 | | | Other segment items | (113.9) | | | (30.2) | | | (49.8) | | | (56.2) | | | (250.1) | | | Restructuring charges | — | | | — | | | — | | | (19.6) | | | (19.6) | | | Acquisition-related costs | — | | | — | | | — | | | (10.6) | | | (10.6) | | | Other operating income | — | | | — | | | — | | | 0.1 | | | 0.1 | | | Interest expense, net | — | | | — | | | — | | | (86.4) | | | (86.4) | | | Non-operating pension income | — | | | — | | | — | | | 6.1 | | | 6.1 | | | | | | | | | | | | | Income (loss) before taxes | $ | 8.9 | | | $ | 13.1 | | | $ | 43.3 | | | $ | (179.8) | | | $ | (114.5) | | | | | | | | | | | | | Other Items | | | | | | | | | | | Depreciation and amortization expense | $ | 191.3 | | | $ | 23.6 | | | $ | 17.7 | | | $ | 6.7 | | | $ | 239.3 | | | Capital spending | 49.2 | | | 6.6 | | | 14.5 | | | 2.4 | | | 72.7 | | | Assets | 5,118.1 | | | 934.1 | | | 833.1 | | | 555.3 | | | 7,440.6 | | | Segment Sales by Geography | | | | | | | | | | | United States | $ | 1,109.2 | | | $ | 348.4 | | | $ | 899.4 | | | $ | — | | | $ | 2,357.0 | | | Europe | 59.7 | | | 202.7 | | | 41.5 | | | — | | | 303.9 | | | Other foreign | 407.5 | | | 226.6 | | | 29.9 | | | — | | | 664.0 | | | Total sales | $ | 1,576.4 | | | $ | 777.7 | | | $ | 970.8 | | | $ | — | | | $ | 3,324.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | Chlor Alkali Products and Vinyls | | Epoxy | | Winchester | | Corporate & Other | | Totals | | Segment Detail | ($ in millions) | | Sales | $ | 979.5 | | | $ | 331.2 | | | $ | 447.6 | | | $ | — | | | $ | 1,758.3 | | | Cost of goods sold | 871.8 | | | 340.0 | | | 402.6 | | | 5.8 | | | 1,620.2 | | | Gross margin | 107.7 | | | (8.8) | | | 45.0 | | | (5.8) | | | 138.1 | | | Other segment items | (42.8) | | | (14.9) | | | (20.0) | | | (18.9) | | | (96.6) | | | Restructuring charges | — | | | — | | | — | | | (7.4) | | | (7.4) | | | Other operating expense | — | | | — | | | — | | | (0.2) | | | (0.2) | | | Interest expense, net | — | | | — | | | — | | | (45.6) | | | (45.6) | | | Non-operating pension income | — | | | — | | | — | | | 4.9 | | | 4.9 | | | | | | | | | | | | | Income (loss) before taxes | $ | 64.9 | | | $ | (23.7) | | | $ | 25.0 | | | $ | (73.0) | | | $ | (6.8) | | | | | | | | | | | | | Other Items | | | | | | | | | | | Depreciation and amortization expense | $ | 106.3 | | | $ | 13.1 | | | $ | 7.9 | | | $ | 2.6 | | | $ | 129.9 | | | Capital spending | 14.2 | | | 2.0 | | | 11.7 | | | 3.1 | | | 31.0 | | | Assets | 5,277.4 | | | 949.3 | | | 866.7 | | | 574.5 | | | 7,667.9 | | | Segment Sales by Geography | | | | | | | | | | | United States | $ | 664.2 | | | $ | 140.8 | | | $ | 396.9 | | | $ | — | | | $ | 1,201.9 | | | Europe | 42.0 | | | 93.4 | | | 20.4 | | | — | | | 155.8 | | | Other foreign | 273.3 | | | 97.0 | | | 30.3 | | | — | | | 400.6 | | | Total sales | $ | 979.5 | | | $ | 331.2 | | | $ | 447.6 | | | $ | — | | | $ | 1,758.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | Chlor Alkali Products and Vinyls | | Epoxy | | Winchester | | Corp/Other | | Totals | | Segment Detail | ($ in millions) | | Sales | $ | 1,904.0 | | | $ | 662.9 | | | $ | 835.6 | | | $ | — | | | $ | 3,402.5 | | | Cost of goods sold | 1,673.8 | | | 685.1 | | | 745.2 | | | 11.6 | | | 3,115.7 | | | Gross margin | 230.2 | | | (22.2) | | | 90.4 | | | (11.6) | | | 286.8 | | | Other segment items | (87.0) | | | (29.9) | | | (42.6) | | | (38.1) | | | (197.6) | | | Restructuring charges | — | | | — | | | — | | | (11.4) | | | (11.4) | | | Other operating expense | — | | | — | | | — | | | (0.2) | | | (0.2) | | | Interest expense, net | — | | | — | | | — | | | (92.9) | | | (92.9) | | | Non-operating pension income | — | | | — | | | — | | | 10.6 | | | 10.6 | | | | | | | | | | | | | Income (loss) before taxes | $ | 143.2 | | | $ | (52.1) | | | $ | 47.8 | | | $ | (143.6) | | | $ | (4.7) | | | | | | | | | | | | | Other Items | | | | | | | | | | | Depreciation and amortization expense | $ | 213.5 | | | $ | 25.9 | | | $ | 17.4 | | | $ | 5.3 | | | $ | 262.1 | | | Capital spending | 51.8 | | | 12.8 | | | 22.8 | | | 5.0 | | | 92.4 | | | Assets | 5,277.4 | | | 949.3 | | | 866.7 | | | 574.5 | | | 7,667.9 | | | Segment Sales by Geography | | | | | | | | | | | United States | $ | 1,311.1 | | | $ | 284.9 | | | $ | 743.1 | | | $ | — | | | $ | 2,339.1 | | | Europe | 75.2 | | | 195.2 | | | 33.0 | | | — | | | 303.4 | | | Other foreign | 517.7 | | | 182.8 | | | 59.5 | | | — | | | 760.0 | | | Total sales | $ | 1,904.0 | | | $ | 662.9 | | | $ | 835.6 | | | $ | — | | | $ | 3,402.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Segment Sales by Product Line | ($ in millions) | | Chlor Alkali Products and Vinyls | | | | | | | | | Caustic soda | $ | 348.8 | | | $ | 435.1 | | | $ | 677.3 | | | $ | 821.9 | | | Chlorine, chlorine-derivatives and other products | 470.7 | | | 544.4 | | | 899.1 | | | 1,082.1 | | | Total Chlor Alkali Products and Vinyls | 819.5 | | | 979.5 | | | 1,576.4 | | | 1,904.0 | | | Epoxy | | | | | | | | | Aromatics and allylics | 172.3 | | | 130.8 | | | 316.8 | | | 271.8 | | | Epoxy resins and formulated solutions | 249.8 | | | 200.4 | | | 460.9 | | | 391.1 | | | Total Epoxy | 422.1 | | | 331.2 | | | 777.7 | | | 662.9 | | | Winchester | | | | | | | | | Commercial | 192.4 | | | 169.7 | | | 361.2 | | | 325.6 | | Military and law enforcement(1) | 307.9 | | | 277.9 | | | 609.6 | | | 510.0 | | | Total Winchester | 500.3 | | | 447.6 | | | 970.8 | | | 835.6 | | | Total sales | $ | 1,741.9 | | | $ | 1,758.3 | | | $ | 3,324.9 | | | $ | 3,402.5 | |
(1) For the three months ended June 30, 2026 and 2025, revenue recognized over time represented $112.2 million and $94.4 million, respectively, and for the six months ended June 30, 2026 and 2025, revenue recognized over time represented $233.0 million and $152.9 million, respectively, associated with governmental contracts within our Winchester business.
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