PolyOne 2009 Annual Report

Note 1 — DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 2 — GOODWILL AND INTANGIBLE ASSETS
Note 3 — EMPLOYEE SEPARATION AND PLANT PHASEOUT
Note 4 — FINANCIAL INFORMATION OF EQUITY AFFILIATES
Note 5 — FINANCING ARRANGEMENTS
Note 6 — LEASING ARRANGEMENTS
Note 7 — ACCOUNTS RECEIVABLE
Note 8 — INVENTORIES
Note 9 — PROPERTY
Note 10 — OTHER BALANCE SHEET LIABILITIES
Note 11 — EMPLOYEE BENEFIT PLANS
Note 12 — COMMITMENTS AND RELATED-PARTY INFORMATION
Note 13 — OTHER EXPENSE, NET
Note 14 — INCOME TAXES
Note 15 — SHARE-BASED COMPENSATION
Note 16 — SEGMENT INFORMATION
Note 17 — WEIGHTED-AVERAGE SHARES USED IN COMPUTING EARNINGS PER SHARE
Note 18 — FINANCIAL INSTRUMENTS
Note 19 — FAIR VALUE
Note 20 — BUSINESS COMBINATIONS
Note 21 — SHAREHOLDERS’ EQUITY
Note 22 — SUBSEQUENT EVENTS
Note 23 — SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
Note 1 — DESCRIPTION OF BUSINESS AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
Description of Business
PolyOne Corporation (PolyOne, Company, we, us or our) is a premier
provider of specialized polymer materials, services and solutions
with operations in thermoplastic compounds, specialty polymer
formulations, color and additive systems, thermoplastic resin distribution
and specialty polyvinyl chloride (PVC) resins. We also have
two equity investments: one in a manufacturer of caustic soda and
chlorine and one in a formulator of polyurethane compounds.
PolyOne was incorporated in the state of Ohio on August 31, 2000.
Our operations are located primarily in the United States,
Europe, Canada, Asia and Mexico. Our operations are reported in
six reportable segments: International Color and Engineered Materials;
Specialty Engineered Materials; Specialty Color, Additives and
Inks; Performance Products and Solutions; PolyOne Distribution;
and Resin and Intermediates. See Note 16, Segment Information,
for more information.
Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of
PolyOne and its subsidiaries. All majority-owned affiliates over
which we have control are consolidated. Investments in affiliates
and joint ventures in which our ownership is 50% or less, or in which
we do not have control but have the ability to exercise significant
influence over operating and financial policies, are accounted for
under the equity method. Intercompany transactions are eliminated.
Transactions with related parties, including joint ventures,
are in the ordinary course of business.
Effective April 1, 2009, we changed the functional currency for
our Canadian operations from the Canadian dollar to the U.S. dollar.
Our sales in Canada are primarily denominated in U.S. dollars.
Additionally, with the closure of our Niagara, Canada facility in the
first quarter of 2009, the majority of our inventory is sourced from
our U.S. operations. The change in functional currency is applied on
a prospective basis. The U.S dollar translated amounts of nonmonetary
assets and liabilities at March 31, 2009 became the historical
accounting basis for those assets and liabilities at April 1, 2009.
POLYONE CORPORATION
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