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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Olin Corp | NYSE:OLN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.34 | 0.64% | 53.63 | 55.01 | 53.54 | 54.00 | 950,804 | 01:00:00 |
|
(Mark One)
|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from
to
|
Virginia
|
13-1872319
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
190 Carondelet Plaza, Suite 1530, Clayton, MO
(Address of principal executive offices)
|
63105
(Zip code)
|
Title of each class
|
Name of each exchange on which registered
|
Common Stock,
par value $1 per share
|
New York Stock Exchange
|
Document
|
Part of 10-K into which incorporated
|
Proxy Statement relating to Olin’s Annual Meeting of Shareholders
to be held in 2018
|
Part III
|
TABLE OF CONTENTS FOR FORM 10-K
|
Page
|
|
Part I
|
||
Item 1.
|
||
Item 1A.
|
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Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Part II
|
||
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
|
||
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||
|
||
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||
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||
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||
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||
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||
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||
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||
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Item 7A.
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||
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Item 8.
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||
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||
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Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
||
Part III
|
||
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
Part IV
|
||
Item 15.
|
||
Item 16.
|
||
Products & Services
|
|
Major End Uses
|
|
Plants & Facilities
|
|
Major Raw Materials & Components for Products/Services
|
Allylics (allyl chloride and epichlorohydrin) & aromatics (acetone, bisphenol, cumene and phenol)
|
|
Manufacturers of polymers, resins and other plastic materials, water purification, and pesticides
|
|
Freeport, TX
Stade, Germany
Terneuzen, Netherlands
|
|
benzene, caustic soda, chlorine, propylene
|
|
|
|
|
|
|
|
Liquid epoxy resin/solid epoxy resin
|
|
Adhesives, paint and coatings, composites and flooring
|
|
Freeport, TX
Guaruja, Brazil
Stade, Germany
|
|
bisphenol, caustic soda, epichlorohydrin
|
|
|
|
|
|
|
|
Differentiated epoxy resins
|
|
Electrical laminates, paint and coatings, wind blades, electronics and construction
|
|
Baltringen, Germany
Freeport, TX
Guaruja, Brazil
Gumi, South Korea
Pisticci, Italy
Rheinmunster, Germany
Roberta, GA
Stade, Germany
Zhangjigang, China
|
|
liquid epoxy resins, solid epoxy resins
|
Products & Services
|
|
Major End Uses
|
|
Plants & Facilities
|
|
Major Raw Materials & Components for Products/Services
|
Winchester® sporting ammunition (shotshells, small caliber centerfire & rimfire ammunition)
|
|
Hunters & recreational shooters, law enforcement agencies
|
|
East Alton, IL
Geelong, Australia
Oxford, MS
|
|
brass, lead, steel, plastic, propellant, explosives
|
|
|
|
|
|
|
|
Small caliber military ammunition
|
|
Infantry and mounted weapons
|
|
East Alton, IL
Oxford, MS
|
|
brass, lead, propellant, explosives
|
|
|
|
|
|
|
|
Industrial products (8 gauge loads & powder-actuated tool loads)
|
|
Maintenance applications in power &
concrete industries, powder-actuated tools in construction industry
|
|
East Alton, IL
Geelong, Australia
Oxford, MS
|
|
brass, lead, plastic, propellant, explosives
|
Location
|
|
Number of Employees
|
|
Expiration Date
|
Lemont (Chlor Alkali Products and Vinyls)
|
|
20
|
|
March 2018
|
Becancour (Chlor Alkali Products and Vinyls)
|
|
101
|
|
April 2018
|
McIntosh (Chlor Alkali Products and Vinyls)
|
|
197
|
|
April 2019
|
•
|
diversion of management’s attention away from normal daily business operations;
|
•
|
loss of, or delays in accessing, data;
|
•
|
increased demand on our operations support personnel;
|
•
|
increased costs;
|
•
|
initial dependence on unfamiliar systems while training personnel to use new systems; and
|
•
|
increased operating expenses resulting from training, conversion and transition support activities.
|
•
|
limiting our ability to fund working capital, capital expenditures, and other general corporate purposes;
|
•
|
limiting our ability to accommodate growth by reducing funds otherwise available for other corporate purposes and to compete, which in turn could prevent us from fulfilling our obligations under our indebtedness;
|
•
|
limiting our operational flexibility due to the covenants contained in our debt agreements;
|
•
|
to the extent that our debt is subject to floating interest rates, increasing our vulnerability to fluctuations in market interest rates;
|
•
|
limiting our ability to pay cash dividends;
|
•
|
limiting our flexibility for, or reacting to, changes in our business or industry or economic conditions, thereby limiting our ability to compete with companies that are not as highly leveraged; and
|
•
|
increasing our vulnerability to economic downturns.
|
Location
|
|
Number of Employees
|
|
Expiration Date
|
Lemont (Chlor Alkali Products and Vinyls)
|
|
20
|
|
March 2018
|
Becancour (Chlor Alkali Products and Vinyls)
|
|
101
|
|
April 2018
|
McIntosh (Chlor Alkali Products and Vinyls)
|
|
197
|
|
April 2019
|
2017
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
Market price of common stock per NYSE composite transactions
|
|
|
|
|
|
|
|
|
||||||||
High
|
|
$
|
33.88
|
|
|
$
|
33.67
|
|
|
$
|
34.85
|
|
|
$
|
37.52
|
|
Low
|
|
25.43
|
|
|
27.79
|
|
|
28.45
|
|
|
33.34
|
|
2016
|
|
|
|
|
|
|
|
|
||||||||
Market price of common stock per NYSE composite transactions
|
|
|
|
|
|
|
|
|
||||||||
High
|
|
$
|
17.75
|
|
|
$
|
24.99
|
|
|
$
|
26.46
|
|
|
$
|
26.93
|
|
Low
|
|
12.29
|
|
|
16.55
|
|
|
18.24
|
|
|
19.62
|
|
Period
|
|
Total Number of Shares
(or Units) Purchased
(1)
|
|
Average Price
Paid
per Share (or Unit)
|
|
Total Number of Shares
(or Units) Purchased as
Part of Publicly
Announced Plans or
Programs
|
|
Maximum Number of
Shares (or Units) that
May Yet Be Purchased
Under the Plans or
Programs
|
|
||||
October 1-31, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
November 1-30, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
December 1-31, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
—
|
|
(1)
|
(1)
|
On April 24, 2014, we announced a share repurchase program approved by the board of directors for the purchase of up to 8 million shares of common stock that terminated on April 24, 2017. Through
December 31, 2017
,
1,937,343
shares had been repurchased, and the
6,062,657
shares that remained available for purchase under this program have expired. Under the Merger Agreement relating to the Acquisition, we were restricted from repurchasing shares of our common stock prior to the consummation of the merger. For a period of two years subsequent to the Closing Date, we were subject to certain restrictions on our ability to conduct share repurchases.
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Operations
|
|
($ and shares in millions, except per share data)
|
||||||||||||||||||
Sales
|
|
$
|
6,268
|
|
|
$
|
5,551
|
|
|
$
|
2,854
|
|
|
$
|
2,241
|
|
|
$
|
2,515
|
|
Cost of goods sold
|
|
5,540
|
|
|
4,924
|
|
|
2,487
|
|
|
1,853
|
|
|
2,034
|
|
|||||
Selling and administration
|
|
350
|
|
|
323
|
|
|
186
|
|
|
166
|
|
|
190
|
|
|||||
Restructuring charges
|
|
38
|
|
|
113
|
|
|
3
|
|
|
16
|
|
|
6
|
|
|||||
Acquisition-related costs
|
|
13
|
|
|
49
|
|
|
123
|
|
|
4
|
|
|
—
|
|
|||||
Other operating income
|
|
3
|
|
|
11
|
|
|
46
|
|
|
2
|
|
|
1
|
|
|||||
Earnings of non-consolidated affiliates
|
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|||||
Interest expense
|
|
217
|
|
|
192
|
|
|
97
|
|
|
44
|
|
|
39
|
|
|||||
Interest income and other income (expense), net
|
|
2
|
|
|
3
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|||||
Income (loss) before taxes from continuing operations
|
|
117
|
|
|
(34
|
)
|
|
7
|
|
|
163
|
|
|
250
|
|
|||||
Income tax (benefit) provision
|
|
(432
|
)
|
|
(30
|
)
|
|
8
|
|
|
58
|
|
|
71
|
|
|||||
Income (loss) from continuing operations
|
|
549
|
|
|
(4
|
)
|
|
(1
|
)
|
|
105
|
|
|
179
|
|
|||||
Discontinued operations, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Net income (loss)
|
|
$
|
549
|
|
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
106
|
|
|
$
|
179
|
|
Financial position
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents and restricted cash
|
|
$
|
218
|
|
|
$
|
185
|
|
|
$
|
392
|
|
|
$
|
257
|
|
|
$
|
312
|
|
Working capital, excluding cash and cash equivalents
|
|
527
|
|
|
439
|
|
|
395
|
|
|
182
|
|
|
125
|
|
|||||
Property, plant and equipment, net
|
|
3,576
|
|
|
3,705
|
|
|
3,953
|
|
|
931
|
|
|
988
|
|
|||||
Total assets
|
|
9,218
|
|
|
8,763
|
|
|
9,289
|
|
|
2,689
|
|
|
2,790
|
|
|||||
Capitalization:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt
|
|
1
|
|
|
81
|
|
|
205
|
|
|
16
|
|
|
13
|
|
|||||
Long-term debt
|
|
3,611
|
|
|
3,537
|
|
|
3,644
|
|
|
650
|
|
|
665
|
|
|||||
Shareholders’ equity
|
|
2,754
|
|
|
2,273
|
|
|
2,419
|
|
|
1,013
|
|
|
1,101
|
|
|||||
Total capitalization
|
|
$
|
6,366
|
|
|
$
|
5,891
|
|
|
$
|
6,268
|
|
|
$
|
1,679
|
|
|
$
|
1,779
|
|
Per share data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
|
$
|
3.31
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
1.33
|
|
|
$
|
2.24
|
|
Discontinued operations, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|||||
Net income (loss)
|
|
$
|
3.31
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
1.34
|
|
|
$
|
2.24
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
|
$
|
3.26
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
1.32
|
|
|
$
|
2.21
|
|
Discontinued operations, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|||||
Net income (loss)
|
|
$
|
3.26
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
1.33
|
|
|
$
|
2.21
|
|
Common Cash Dividends
|
|
0.80
|
|
|
0.80
|
|
|
0.80
|
|
|
0.80
|
|
|
0.80
|
|
|||||
Market price of common stock:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
High
|
|
$
|
37.52
|
|
|
$
|
26.93
|
|
|
$
|
34.34
|
|
|
$
|
29.28
|
|
|
$
|
29.52
|
|
Low
|
|
25.43
|
|
|
12.29
|
|
|
15.73
|
|
|
20.43
|
|
|
21.29
|
|
|||||
Year-end
|
|
35.58
|
|
|
25.61
|
|
|
17.26
|
|
|
22.77
|
|
|
28.85
|
|
|||||
Other
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
|
$
|
294
|
|
|
$
|
278
|
|
|
$
|
131
|
|
|
$
|
72
|
|
|
$
|
91
|
|
Depreciation and amortization
|
|
559
|
|
|
534
|
|
|
229
|
|
|
139
|
|
|
135
|
|
|||||
Common dividends paid
|
|
133
|
|
|
132
|
|
|
80
|
|
|
63
|
|
|
64
|
|
|||||
Repurchases of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
36
|
|
|||||
Current ratio
|
|
1.8
|
|
|
1.7
|
|
|
1.7
|
|
|
2.2
|
|
|
2.1
|
|
|||||
Total debt to total capitalization
|
|
56.7
|
%
|
|
61.4
|
%
|
|
61.4
|
%
|
|
39.7
|
%
|
|
38.1
|
%
|
|||||
Effective tax rate
|
|
(368.9
|
)%
|
|
88.6
|
%
|
|
120.9
|
%
|
|
35.5
|
%
|
|
28.6
|
%
|
|||||
Average common shares outstanding - diluted
|
|
168.5
|
|
|
165.2
|
|
|
103.4
|
|
|
79.7
|
|
|
80.9
|
|
|||||
Shareholders
|
|
3,900
|
|
|
4,200
|
|
|
4,500
|
|
|
3,600
|
|
|
3,900
|
|
|||||
Employees
|
|
6,400
|
|
|
6,400
|
|
|
6,200
|
|
|
3,900
|
|
|
4,100
|
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
($ in millions, except per share data)
|
||||||||||
Sales
|
$
|
6,268.4
|
|
|
$
|
5,550.6
|
|
|
$
|
2,854.4
|
|
Cost of goods sold
|
5,539.6
|
|
|
4,923.7
|
|
|
2,486.8
|
|
|||
Gross margin
|
728.8
|
|
|
626.9
|
|
|
367.6
|
|
|||
Selling and administration
|
350.7
|
|
|
323.2
|
|
|
186.3
|
|
|||
Restructuring charges
|
37.6
|
|
|
112.9
|
|
|
2.7
|
|
|||
Acquisition-related costs
|
12.8
|
|
|
48.8
|
|
|
123.4
|
|
|||
Other operating income
|
3.3
|
|
|
10.6
|
|
|
45.7
|
|
|||
Operating income
|
331.0
|
|
|
152.6
|
|
|
100.9
|
|
|||
Earnings of non-consolidated affiliates
|
1.8
|
|
|
1.7
|
|
|
1.7
|
|
|||
Interest expense
|
217.4
|
|
|
191.9
|
|
|
97.0
|
|
|||
Interest income
|
1.8
|
|
|
3.4
|
|
|
1.1
|
|
|||
Income (loss) before taxes
|
117.2
|
|
|
(34.2
|
)
|
|
6.7
|
|
|||
Income tax (benefit) provision
|
(432.3
|
)
|
|
(30.3
|
)
|
|
8.1
|
|
|||
Net income (loss)
|
$
|
549.5
|
|
|
$
|
(3.9
|
)
|
|
$
|
(1.4
|
)
|
Net income (loss) per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
3.31
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
Diluted
|
$
|
3.26
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Sales:
|
($ in millions)
|
||||||||||
Chlor Alkali Products and Vinyls
|
$
|
3,500.8
|
|
|
$
|
2,999.3
|
|
|
$
|
1,713.4
|
|
Epoxy
|
2,086.4
|
|
|
1,822.0
|
|
|
429.6
|
|
|||
Winchester
|
681.2
|
|
|
729.3
|
|
|
711.4
|
|
|||
Total sales
|
$
|
6,268.4
|
|
|
$
|
5,550.6
|
|
|
$
|
2,854.4
|
|
Income (loss) before taxes:
|
|
|
|
|
|
||||||
Chlor Alkali Products and Vinyls
(1)
|
$
|
405.8
|
|
|
$
|
224.9
|
|
|
$
|
115.5
|
|
Epoxy
|
(11.8
|
)
|
|
15.4
|
|
|
(7.5
|
)
|
|||
Winchester
|
72.4
|
|
|
120.9
|
|
|
115.6
|
|
|||
Corporate/Other:
|
|
|
|
|
|
||||||
Pension income
(2)
|
42.7
|
|
|
53.6
|
|
|
35.2
|
|
|||
Environmental expense
|
(8.5
|
)
|
|
(9.2
|
)
|
|
(15.7
|
)
|
|||
Other corporate and unallocated costs
(3)
|
(120.7
|
)
|
|
(100.2
|
)
|
|
(60.1
|
)
|
|||
Restructuring charges
(4)
|
(37.6
|
)
|
|
(112.9
|
)
|
|
(2.7
|
)
|
|||
Acquisition-related costs
(5)
|
(12.8
|
)
|
|
(48.8
|
)
|
|
(123.4
|
)
|
|||
Other operating income
(6)
|
3.3
|
|
|
10.6
|
|
|
45.7
|
|
|||
Interest expense
(7)
|
(217.4
|
)
|
|
(191.9
|
)
|
|
(97.0
|
)
|
|||
Interest income
|
1.8
|
|
|
3.4
|
|
|
1.1
|
|
|||
Income (loss) before taxes
|
$
|
117.2
|
|
|
$
|
(34.2
|
)
|
|
$
|
6.7
|
|
(1)
|
Earnings of non-consolidated affiliates are included in the Chlor Alkali Products and Vinyls segment results consistent with management’s monitoring of the operating segment. The earnings from non-consolidated affiliates were
$1.8 million
for the year ended December 31,
2017
and
$1.7 million
for both the years ended December 31,
2016
and
2015
.
|
(2)
|
The service cost and the amortization of prior service cost components of pension expense related to the employees of the operating segments are allocated to the operating segments based on their respective estimated census data. All other components of pension costs are included in corporate/other and include items such as the expected return on plan assets, interest cost and recognized actuarial gains and losses.
|
(3)
|
Other corporate and unallocated costs for the year ended December 31,
2017
included costs associated with the implementation of the Information Technology Project of $5.3 million.
|
(4)
|
Restructuring charges for the years ended December 31,
2017
and
2016
were primarily associated with the March 2016 closure of 433,000 tons of chlor alkali capacity across three separate locations. For the year ended December 31,
2016
, $76.6 million of these charges were non-cash asset impairment charges for equipment and facilities. Restructuring charges for the years ended December 31,
2017
,
2016
and
2015
also included costs associated with the relocation of our Winchester centerfire ammunition manufacturing operations from East Alton, IL to Oxford, MS which was completed during 2016 and permanently closing a portion of the Becancour, Canada chlor alkali facility in 2014.
|
(5)
|
Acquisition-related costs for the years ended December 31,
2017
,
2016
and
2015
were related to the integration of the Acquired Business and consisted of advisory, legal, accounting and other professional fees. For the year ended
|
(6)
|
Other operating income for the year ended December 31,
2017
included a gain of $3.3 million from the sale of a former manufacturing facility. Other operating income for the year ended December 31, 2016 included an $11.0 million insurance recovery for property damage and business interruption related to a 2008 chlor alkali facility incident. Other operating income for the year ended December 31, 2015 included insurance recoveries for property damage and business interruption of $42.3 million related to the portion of the Becancour, Canada chlor alkali facility that has been shut down since late June 2014 and $3.7 million related to the McIntosh, AL chlor alkali facility.
|
(7)
|
Interest expense for the year ended
December 31, 2017
included
$3.9 million
of accretion expense related to the 2020 ethylene payment discount. Interest expense was reduced by capitalized interest of $3.0 million, $1.9 million and $1.1 million for the years ended December 31,
2017
,
2016
and
2015
, respectively. Interest expense for the year ended December 31, 2015 included acquisition financing expenses of $30.5 million.
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
($ in millions)
|
||||||||||
Pension (benefits) costs
|
$
|
(26.4
|
)
|
|
$
|
(37.1
|
)
|
|
$
|
18.7
|
|
Other postretirement benefit costs
|
2.5
|
|
|
2.5
|
|
|
6.7
|
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Cash outlays:
|
($ in millions)
|
||||||||||
Remedial and investigatory spending (charged to reserve)
|
$
|
16.5
|
|
|
$
|
10.3
|
|
|
$
|
14.1
|
|
Capital spending
|
1.7
|
|
|
3.5
|
|
|
2.0
|
|
|||
Plant operations (charged to cost of goods sold)
|
199.7
|
|
|
192.6
|
|
|
71.9
|
|
|||
Total cash outlays
|
$
|
217.9
|
|
|
$
|
206.4
|
|
|
$
|
88.0
|
|
|
December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
($ in millions)
|
||||||||||
Beginning balance
|
$
|
137.3
|
|
|
$
|
138.1
|
|
|
$
|
138.3
|
|
Charges to income
|
10.3
|
|
|
9.2
|
|
|
15.7
|
|
|||
Remedial and investigatory spending
|
(16.5
|
)
|
|
(10.3
|
)
|
|
(14.1
|
)
|
|||
Currency translation adjustments
|
0.5
|
|
|
0.3
|
|
|
(1.8
|
)
|
|||
Ending balance
|
$
|
131.6
|
|
|
$
|
137.3
|
|
|
$
|
138.1
|
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
($ in millions)
|
||||||||||
Charges to income
|
$
|
10.3
|
|
|
$
|
9.2
|
|
|
$
|
15.7
|
|
Recoveries from third parties of costs incurred and expensed
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|||
Environmental expense
|
$
|
8.5
|
|
|
$
|
9.2
|
|
|
$
|
15.7
|
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Provided by (used for)
|
($ in millions)
|
||||||||||
Net operating activities
|
$
|
648.8
|
|
|
$
|
603.2
|
|
|
$
|
217.1
|
|
Capital expenditures
|
(294.3
|
)
|
|
(278.0
|
)
|
|
(130.9
|
)
|
|||
Business acquired and related transactions, net of cash acquired
|
—
|
|
|
(69.5
|
)
|
|
(408.1
|
)
|
|||
Payments under long-term supply contracts
|
(209.4
|
)
|
|
(175.7
|
)
|
|
—
|
|
|||
Proceeds from sale/leaseback of equipment
|
—
|
|
|
40.4
|
|
|
—
|
|
|||
Proceeds from disposition of property, plant and equipment
|
5.2
|
|
|
0.5
|
|
|
26.2
|
|
|||
Net investing activities
|
(498.5
|
)
|
|
(473.5
|
)
|
|
(504.0
|
)
|
|||
Long-term debt (repayments) borrowings, net
|
(2.4
|
)
|
|
(205.3
|
)
|
|
544.3
|
|
|||
Stock options exercised
|
29.8
|
|
|
0.5
|
|
|
2.2
|
|
|||
Dividends paid
|
(133.0
|
)
|
|
(132.1
|
)
|
|
(79.5
|
)
|
|||
Debt and equity issuance costs
|
(11.2
|
)
|
|
(1.0
|
)
|
|
(45.2
|
)
|
|||
Net financing activities
|
(116.8
|
)
|
|
(337.5
|
)
|
|
422.2
|
|
|
Payments Due by Period
|
||||||||||||||||||
Contractual Obligations
|
Total
|
|
Less than
1 Year
|
|
1-3
Years
|
|
3-5
Years
|
|
More than
5 Years
|
||||||||||
|
($ in millions)
|
||||||||||||||||||
Debt obligations, including capital lease obligations
(a)
|
$
|
3,672.7
|
|
|
$
|
0.7
|
|
|
$
|
252.0
|
|
|
$
|
994.0
|
|
|
$
|
2,426.0
|
|
Interest payments under debt obligations and interest rate swap agreements
(b)
|
1,597.0
|
|
|
213.1
|
|
|
436.6
|
|
|
404.9
|
|
|
542.4
|
|
|||||
Contingent tax liability
|
37.5
|
|
|
5.7
|
|
|
9.3
|
|
|
5.1
|
|
|
17.4
|
|
|||||
Domestic qualified pension plan contributions
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
International qualified pension plan contributions
(d)
|
226.9
|
|
|
5.0
|
|
|
10.6
|
|
|
13.4
|
|
|
197.9
|
|
|||||
Non-qualified pension plan payments
|
5.8
|
|
|
0.5
|
|
|
1.2
|
|
|
0.9
|
|
|
3.2
|
|
|||||
Postretirement benefit payments
|
50.8
|
|
|
4.3
|
|
|
7.6
|
|
|
6.2
|
|
|
32.7
|
|
|||||
Long-term supply contracts
|
441.0
|
|
|
—
|
|
|
441.0
|
|
|
—
|
|
|
—
|
|
|||||
Off-Balance Sheet Commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-cancelable operating leases
|
355.1
|
|
|
87.9
|
|
|
118.9
|
|
|
60.8
|
|
|
87.5
|
|
|||||
Purchasing commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Raw materials
|
7,744.0
|
|
|
688.1
|
|
|
1,275.7
|
|
|
1,416.0
|
|
|
4,364.2
|
|
|||||
Capital expenditures
|
4.1
|
|
|
4.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Utilities
|
1.6
|
|
|
0.5
|
|
|
0.8
|
|
|
0.3
|
|
|
—
|
|
|||||
Total
|
$
|
14,136.5
|
|
|
$
|
1,009.9
|
|
|
$
|
2,553.7
|
|
|
$
|
2,901.6
|
|
|
$
|
7,671.3
|
|
(a)
|
Excludes debt issuance costs and deferred losses on fair value interest rate swaps of $60.7 million at
December 31, 2017
. The debt obligations reflects the issuance of the $550.0 million 2030 Notes and related prepayment of the $1,375.0 million term loan facility in January 2018.
|
(b)
|
For the purposes of this table, we have assumed for all periods presented that there are no changes in the rates from those in effect at December 31,
2017
which ranged from 1.27% to 10.00% and excludes $47.9 million of accretion expense related to the 2020 ethylene payment discount.
|
(c)
|
Given the inherent uncertainty as to actual minimum funding requirements for qualified defined benefit pension plans, no amounts are included in this table for any period beyond one year. Based on the current funding requirements, we will not be required to make any cash contributions to the domestic qualified defined benefit pension plan at least through
2018
. During 2016, we made a discretionary cash contribution to our domestic qualified defined benefit pension plan of $6.0 million.
|
(d)
|
These amounts are only estimated payments assuming for our foreign qualified pension plans a weighted average annual expected rate of return on pension plan assets of
5.6%
and a discount rate on pension plan obligations of
2.2%
. These estimated payments are subject to significant variation and the actual payments may be more than the amounts estimated. In connection with international qualified defined benefit pension plans we made cash contributions of
$1.7 million
and
$1.3 million
in
2017
and
2016
, respectively, and we anticipate less than
$5 million
of cash contributions to international qualified defined benefit pension plans in
2018
.
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Other current assets
|
$
|
19.2
|
|
|
$
|
13.5
|
|
Other assets
|
3.6
|
|
|
7.7
|
|
||
Total derivative asset
|
$
|
22.8
|
|
|
$
|
21.2
|
|
Current installments of long-term debt
|
$
|
—
|
|
|
$
|
0.1
|
|
Accrued liabilities
|
3.8
|
|
|
1.2
|
|
||
Other liabilities
|
28.1
|
|
|
28.5
|
|
||
Total derivative liability
|
$
|
31.9
|
|
|
$
|
29.8
|
|
Assets
|
2017
|
|
2016
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
218.4
|
|
|
$
|
184.5
|
|
Receivables, net
|
733.2
|
|
|
675.0
|
|
||
Income taxes receivable
|
16.9
|
|
|
25.5
|
|
||
Inventories, net
|
682.6
|
|
|
630.4
|
|
||
Other current assets
|
48.1
|
|
|
30.8
|
|
||
Total current assets
|
1,699.2
|
|
|
1,546.2
|
|
||
Property, plant and equipment, net
|
3,575.8
|
|
|
3,704.9
|
|
||
Deferred income taxes
|
36.4
|
|
|
119.5
|
|
||
Other assets
|
1,208.4
|
|
|
644.4
|
|
||
Intangible assets, net
|
578.5
|
|
|
629.6
|
|
||
Goodwill
|
2,120.0
|
|
|
2,118.0
|
|
||
Total assets
|
$
|
9,218.3
|
|
|
$
|
8,762.6
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current installments of long-term debt
|
$
|
0.7
|
|
|
$
|
80.5
|
|
Accounts payable
|
669.8
|
|
|
570.8
|
|
||
Income taxes payable
|
9.4
|
|
|
7.5
|
|
||
Accrued liabilities
|
274.4
|
|
|
263.8
|
|
||
Total current liabilities
|
954.3
|
|
|
922.6
|
|
||
Long-term debt
|
3,611.3
|
|
|
3,537.1
|
|
||
Accrued pension liability
|
635.9
|
|
|
638.1
|
|
||
Deferred income taxes
|
511.2
|
|
|
1,032.5
|
|
||
Other liabilities
|
751.9
|
|
|
359.3
|
|
||
Total liabilities
|
6,464.6
|
|
|
6,489.6
|
|
||
Commitments and contingencies
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Common stock, par value $1 per share:
|
|
|
|
||||
Authorized, 240.0 shares;
|
|
|
|
||||
Issued and outstanding, 167.1 shares (165.4 in 2016)
|
167.1
|
|
|
165.4
|
|
||
Additional paid-in capital
|
2,280.9
|
|
|
2,243.8
|
|
||
Accumulated other comprehensive loss
|
(484.6
|
)
|
|
(510.0
|
)
|
||
Retained earnings
|
790.3
|
|
|
373.8
|
|
||
Total shareholders’ equity
|
2,753.7
|
|
|
2,273.0
|
|
||
Total liabilities and shareholders’ equity
|
$
|
9,218.3
|
|
|
$
|
8,762.6
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Sales
|
$
|
6,268.4
|
|
|
$
|
5,550.6
|
|
|
$
|
2,854.4
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Cost of goods sold
|
5,539.6
|
|
|
4,923.7
|
|
|
2,486.8
|
|
|||
Selling and administration
|
350.7
|
|
|
323.2
|
|
|
186.3
|
|
|||
Restructuring charges
|
37.6
|
|
|
112.9
|
|
|
2.7
|
|
|||
Acquisition-related costs
|
12.8
|
|
|
48.8
|
|
|
123.4
|
|
|||
Other operating income
|
3.3
|
|
|
10.6
|
|
|
45.7
|
|
|||
Operating income
|
331.0
|
|
|
152.6
|
|
|
100.9
|
|
|||
Earnings of non-consolidated affiliates
|
1.8
|
|
|
1.7
|
|
|
1.7
|
|
|||
Interest expense
|
217.4
|
|
|
191.9
|
|
|
97.0
|
|
|||
Interest income
|
1.8
|
|
|
3.4
|
|
|
1.1
|
|
|||
Income (loss) before taxes
|
117.2
|
|
|
(34.2
|
)
|
|
6.7
|
|
|||
Income tax (benefit) provision
|
(432.3
|
)
|
|
(30.3
|
)
|
|
8.1
|
|
|||
Net income (loss)
|
$
|
549.5
|
|
|
$
|
(3.9
|
)
|
|
$
|
(1.4
|
)
|
Net income (loss) per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
3.31
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
Diluted
|
$
|
3.26
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
Average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
166.2
|
|
|
165.2
|
|
|
103.4
|
|
|||
Diluted
|
168.5
|
|
|
165.2
|
|
|
103.4
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net income (loss)
|
$
|
549.5
|
|
|
$
|
(3.9
|
)
|
|
$
|
(1.4
|
)
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments, net
|
31.7
|
|
|
(12.0
|
)
|
|
(9.8
|
)
|
|||
Unrealized (losses) gains on derivative contracts, net
|
(1.7
|
)
|
|
19.7
|
|
|
(2.7
|
)
|
|||
Pension and postretirement liability adjustments, net
|
(21.6
|
)
|
|
(37.5
|
)
|
|
(78.8
|
)
|
|||
Amortization of prior service costs and actuarial losses, net
|
17.0
|
|
|
12.3
|
|
|
41.9
|
|
|||
Total other comprehensive income (loss), net of tax
|
25.4
|
|
|
(17.5
|
)
|
|
(49.4
|
)
|
|||
Comprehensive income (loss)
|
$
|
574.9
|
|
|
$
|
(21.4
|
)
|
|
$
|
(50.8
|
)
|
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In millions, except per share data)
|
||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained
Earnings
|
|
Total
Shareholders’
Equity
|
|||||||||||||
Shares
Issued
|
|
Par
Value
|
|
|||||||||||||||||||
Balance at January 1, 2015
|
77.4
|
|
|
$
|
77.4
|
|
|
$
|
788.3
|
|
|
$
|
(443.1
|
)
|
|
$
|
590.7
|
|
|
$
|
1,013.3
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(49.4
|
)
|
|
—
|
|
|
(49.4
|
)
|
|||||
Dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common stock ($0.80 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(79.5
|
)
|
|
(79.5
|
)
|
|||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock options exercised
|
0.1
|
|
|
0.1
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|||||
Other transactions
|
0.1
|
|
|
0.1
|
|
|
2.2
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|||||
Business acquired in purchase transaction, net of issuance costs
|
87.5
|
|
|
87.5
|
|
|
1,438.0
|
|
|
—
|
|
|
—
|
|
|
1,525.5
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
|
4.9
|
|
|||||
Balance at December 31, 2015
|
165.1
|
|
|
165.1
|
|
|
2,236.4
|
|
|
(492.5
|
)
|
|
509.8
|
|
|
2,418.8
|
|
|||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|
(3.9
|
)
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(17.5
|
)
|
|
—
|
|
|
(17.5
|
)
|
|||||
Dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common stock ($0.80 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(132.1
|
)
|
|
(132.1
|
)
|
|||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock options exercised
|
0.3
|
|
|
0.3
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
|
4.1
|
|
|||||
Other transactions
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|||||
Balance at December 31, 2016
|
165.4
|
|
|
165.4
|
|
|
2,243.8
|
|
|
(510.0
|
)
|
|
373.8
|
|
|
2,273.0
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
549.5
|
|
|
549.5
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
25.4
|
|
|
—
|
|
|
25.4
|
|
|||||
Dividends paid:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common stock ($0.80 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(133.0
|
)
|
|
(133.0
|
)
|
|||||
Common stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock options exercised
|
1.7
|
|
|
1.7
|
|
|
30.7
|
|
|
—
|
|
|
—
|
|
|
32.4
|
|
|||||
Other transactions
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
7.3
|
|
|
—
|
|
|
—
|
|
|
7.3
|
|
|||||
Balance at December 31, 2017
|
167.1
|
|
|
$
|
167.1
|
|
|
$
|
2,280.9
|
|
|
$
|
(484.6
|
)
|
|
$
|
790.3
|
|
|
$
|
2,753.7
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31
(In millions)
|
|||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Operating Activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
549.5
|
|
|
$
|
(3.9
|
)
|
|
$
|
(1.4
|
)
|
Adjustments to reconcile net income (loss) to net cash and cash equivalents provided by (used for) operating activities:
|
|
|
|
|
|
||||||
Earnings of non-consolidated affiliates
|
(1.8
|
)
|
|
(1.7
|
)
|
|
(1.7
|
)
|
|||
Losses (gains) on disposition of property, plant and equipment
|
(3.1
|
)
|
|
0.7
|
|
|
(25.2
|
)
|
|||
Stock-based compensation
|
9.1
|
|
|
7.5
|
|
|
7.6
|
|
|||
Depreciation and amortization
|
558.9
|
|
|
533.5
|
|
|
228.9
|
|
|||
Deferred income taxes
|
(452.7
|
)
|
|
(32.7
|
)
|
|
5.6
|
|
|||
Write-off of equipment and facility included in restructuring charges
|
1.4
|
|
|
76.6
|
|
|
0.5
|
|
|||
Qualified pension plan contributions
|
(1.7
|
)
|
|
(7.3
|
)
|
|
(0.9
|
)
|
|||
Qualified pension plan income
|
(26.9
|
)
|
|
(37.5
|
)
|
|
(32.0
|
)
|
|||
Change in assets and liabilities:
|
|
|
|
|
|
||||||
Receivables
|
(49.9
|
)
|
|
38.5
|
|
|
(115.1
|
)
|
|||
Income taxes receivable/payable
|
9.6
|
|
|
10.7
|
|
|
(12.6
|
)
|
|||
Inventories
|
(37.8
|
)
|
|
23.9
|
|
|
(1.7
|
)
|
|||
Other current assets
|
(12.1
|
)
|
|
20.9
|
|
|
(30.6
|
)
|
|||
Accounts payable and accrued liabilities
|
100.0
|
|
|
(13.1
|
)
|
|
185.1
|
|
|||
Other assets
|
5.8
|
|
|
(4.3
|
)
|
|
37.6
|
|
|||
Other noncurrent liabilities
|
(5.9
|
)
|
|
(12.1
|
)
|
|
(32.5
|
)
|
|||
Other operating activities
|
6.4
|
|
|
3.5
|
|
|
5.5
|
|
|||
Net operating activities
|
648.8
|
|
|
603.2
|
|
|
217.1
|
|
|||
Investing Activities
|
|
|
|
|
|
||||||
Capital expenditures
|
(294.3
|
)
|
|
(278.0
|
)
|
|
(130.9
|
)
|
|||
Business acquired and related transactions, net of cash acquired
|
—
|
|
|
(69.5
|
)
|
|
(408.1
|
)
|
|||
Payments under long-term supply contracts
|
(209.4
|
)
|
|
(175.7
|
)
|
|
—
|
|
|||
Proceeds from sale/leaseback of equipment
|
—
|
|
|
40.4
|
|
|
—
|
|
|||
Proceeds from disposition of property, plant and equipment
|
5.2
|
|
|
0.5
|
|
|
26.2
|
|
|||
Proceeds from disposition of affiliated companies
|
—
|
|
|
8.8
|
|
|
8.8
|
|
|||
Net investing activities
|
(498.5
|
)
|
|
(473.5
|
)
|
|
(504.0
|
)
|
|||
Financing Activities
|
|
|
|
|
|
||||||
Long-term debt:
|
|
|
|
|
|
||||||
Borrowings
|
2,035.5
|
|
|
230.0
|
|
|
1,275.0
|
|
|||
Repayments
|
(2,037.9
|
)
|
|
(435.3
|
)
|
|
(730.7
|
)
|
|||
Stock options exercised
|
29.8
|
|
|
0.5
|
|
|
2.2
|
|
|||
Excess tax benefits from stock-based compensation
|
—
|
|
|
0.4
|
|
|
0.4
|
|
|||
Dividends paid
|
(133.0
|
)
|
|
(132.1
|
)
|
|
(79.5
|
)
|
|||
Debt and equity issuance costs
|
(11.2
|
)
|
|
(1.0
|
)
|
|
(45.2
|
)
|
|||
Net financing activities
|
(116.8
|
)
|
|
(337.5
|
)
|
|
422.2
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
0.4
|
|
|
0.3
|
|
|
(0.1
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
33.9
|
|
|
(207.5
|
)
|
|
135.2
|
|
|||
Cash and cash equivalents, beginning of year
|
184.5
|
|
|
392.0
|
|
|
256.8
|
|
|||
Cash and cash equivalents, end of year
|
$
|
218.4
|
|
|
$
|
184.5
|
|
|
$
|
392.0
|
|
Cash paid for interest and income taxes:
|
|
|
|
|
|
||||||
Interest, net
|
$
|
200.9
|
|
|
$
|
200.8
|
|
|
$
|
32.3
|
|
Income taxes, net of refunds
|
$
|
18.0
|
|
|
$
|
(2.6
|
)
|
|
$
|
5.3
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
($ in millions)
|
||||||||||
Gains (losses) on disposition of property, plant and equipment, net
|
$
|
3.1
|
|
|
$
|
(0.7
|
)
|
|
$
|
(0.6
|
)
|
Gains on insurance recoveries
|
—
|
|
|
11.0
|
|
|
46.0
|
|
|||
Other
|
0.2
|
|
|
0.3
|
|
|
0.3
|
|
|||
Other operating income
|
$
|
3.3
|
|
|
$
|
10.6
|
|
|
$
|
45.7
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Beginning balance
|
$
|
55.4
|
|
|
$
|
53.5
|
|
Accretion
|
3.0
|
|
|
3.1
|
|
||
Spending
|
(8.8
|
)
|
|
(8.8
|
)
|
||
Currency translation adjustments
|
0.2
|
|
|
0.2
|
|
||
Adjustments
|
4.5
|
|
|
7.4
|
|
||
Ending balance
|
$
|
54.3
|
|
|
$
|
55.4
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Dividend yield
|
2.69
|
%
|
|
6.09
|
%
|
|
2.92
|
%
|
|||
Risk-free interest rate
|
2.06
|
%
|
|
1.35
|
%
|
|
1.69
|
%
|
|||
Expected volatility
|
34
|
%
|
|
32
|
%
|
|
34
|
%
|
|||
Expected life (years)
|
6.0
|
|
|
6.0
|
|
|
6.0
|
|
|||
Weighted-average grant fair value (per option)
|
$
|
7.78
|
|
|
$
|
1.90
|
|
|
$
|
6.80
|
|
Weighted-average exercise price
|
$
|
29.82
|
|
|
$
|
13.14
|
|
|
$
|
27.40
|
|
Shares granted
|
1,621,000
|
|
|
1,670,400
|
|
|
776,750
|
|
|
October 5,
2015
|
||
|
(In millions, except per share data)
|
||
Shares
|
87.5
|
|
|
Value of common stock on October 2, 2015
|
17.46
|
|
|
Equity consideration by exchange of shares
|
$
|
1,527.4
|
|
Cash and debt instruments received by DowDuPont
|
2,095.0
|
|
|
Payment for certain liabilities including the final working capital adjustment
|
69.5
|
|
|
Up-front payments under the ethylene agreements
|
433.5
|
|
|
Total cash, debt and equity consideration
|
$
|
4,125.4
|
|
Long-term debt assumed
|
569.0
|
|
|
Pension liabilities assumed
|
442.3
|
|
|
Aggregate purchase price
|
$
|
5,136.7
|
|
|
Initial Valuation
|
|
Measurement Period Adjustments
|
|
Final Valuation
|
||||||
|
($ in millions)
|
||||||||||
Total current assets
|
$
|
921.7
|
|
|
$
|
(38.0
|
)
|
|
$
|
883.7
|
|
Property, plant and equipment
|
3,090.8
|
|
|
(11.7
|
)
|
|
3,079.1
|
|
|||
Deferred tax assets
|
76.8
|
|
|
8.2
|
|
|
85.0
|
|
|||
Intangible assets
|
582.3
|
|
|
30.3
|
|
|
612.6
|
|
|||
Other assets
|
426.5
|
|
|
12.4
|
|
|
438.9
|
|
|||
Total assets acquired
|
5,098.1
|
|
|
1.2
|
|
|
5,099.3
|
|
|||
Total current liabilities
|
357.6
|
|
|
2.3
|
|
|
359.9
|
|
|||
Long-term debt
|
517.9
|
|
|
—
|
|
|
517.9
|
|
|||
Accrued pension liability
|
447.1
|
|
|
(4.8
|
)
|
|
442.3
|
|
|||
Deferred tax liabilities
|
1,054.9
|
|
|
(37.2
|
)
|
|
1,017.7
|
|
|||
Other liabilities
|
2.0
|
|
|
6.6
|
|
|
8.6
|
|
|||
Total liabilities assumed
|
2,379.5
|
|
|
(33.1
|
)
|
|
2,346.4
|
|
|||
Net identifiable assets acquired
|
2,718.6
|
|
|
34.3
|
|
|
2,752.9
|
|
|||
Goodwill
|
1,427.5
|
|
|
(55.0
|
)
|
|
1,372.5
|
|
|||
Fair value of net assets acquired
|
$
|
4,146.1
|
|
|
$
|
(20.7
|
)
|
|
$
|
4,125.4
|
|
|
October 5, 2015
|
||||
|
Weighted-Average Amortization Period
|
|
Gross Amount
|
||
|
|
|
($ in millions)
|
||
Customers, customer contracts and relationships
|
15 Years
|
|
$
|
520.5
|
|
Acquired technology
|
7 Years
|
|
85.1
|
|
|
Trade name
|
5 Years
|
|
7.0
|
|
|
Total acquired intangible assets
|
|
|
$
|
612.6
|
|
|
Year Ended December 31, 2015
|
||
|
($ in millions, except
per share data)
|
||
Sales
|
$
|
5,681.8
|
|
Net loss
|
(36.6)
|
|
|
Net loss per common share:
|
|
||
Basic
|
$
|
(0.22
|
)
|
Diluted
|
$
|
(0.22
|
)
|
|
Employee severance and job related benefits
|
|
Lease and other contract termination costs
|
|
Employee relocation costs
|
|
Facility exit costs
|
|
Write-off of equipment and facility
|
|
Total
|
||||||||||||
|
($ in millions)
|
||||||||||||||||||||||
Balance at January 1, 2015
|
$
|
11.2
|
|
|
$
|
4.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15.7
|
|
2015 restructuring charges
|
—
|
|
|
0.7
|
|
|
0.6
|
|
|
0.9
|
|
|
0.5
|
|
|
2.7
|
|
||||||
Amounts utilized
|
(6.0
|
)
|
|
(2.9
|
)
|
|
(0.6
|
)
|
|
(0.9
|
)
|
|
(0.5
|
)
|
|
(10.9
|
)
|
||||||
Currency translation adjustments
|
(0.6
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
||||||
Balance at December 31, 2015
|
4.6
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
||||||
2016 restructuring charges
|
5.1
|
|
|
13.6
|
|
|
2.1
|
|
|
15.5
|
|
|
76.6
|
|
|
112.9
|
|
||||||
Amounts utilized
|
(6.3
|
)
|
|
(8.2
|
)
|
|
(2.1
|
)
|
|
(13.7
|
)
|
|
(76.6
|
)
|
|
(106.9
|
)
|
||||||
Balance at December 31, 2016
|
3.4
|
|
|
7.5
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|
12.7
|
|
||||||
2017 restructuring charges
|
2.0
|
|
|
22.1
|
|
|
0.3
|
|
|
11.7
|
|
|
1.5
|
|
|
37.6
|
|
||||||
Amounts utilized
|
(3.6
|
)
|
|
(26.3
|
)
|
|
(0.3
|
)
|
|
(13.5
|
)
|
|
(1.5
|
)
|
|
(45.2
|
)
|
||||||
Balance at December 31, 2017
|
$
|
1.8
|
|
|
$
|
3.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.1
|
|
|
|
Chlor Alkali Products
and Vinyls
|
|
Winchester
|
|
Total
|
||||||||||
|
|
Becancour
|
|
Capacity Reductions
|
|
|
||||||||||
|
|
($ in millions)
|
||||||||||||||
Write-off of equipment and facility
|
|
$
|
3.5
|
|
|
$
|
78.1
|
|
|
$
|
—
|
|
|
$
|
81.6
|
|
Employee severance and job related benefits
|
|
2.7
|
|
|
5.5
|
|
|
14.7
|
|
|
22.9
|
|
||||
Facility exit costs
|
|
4.6
|
|
|
23.1
|
|
|
2.3
|
|
|
30.0
|
|
||||
Pension and other postretirement benefits curtailment
|
|
—
|
|
|
—
|
|
|
4.1
|
|
|
4.1
|
|
||||
Employee relocation costs
|
|
—
|
|
|
1.7
|
|
|
6.0
|
|
|
7.7
|
|
||||
Lease and other contract termination costs
|
|
5.3
|
|
|
35.6
|
|
|
—
|
|
|
40.9
|
|
||||
Total cumulative restructuring charges
|
|
$
|
16.1
|
|
|
$
|
144.0
|
|
|
$
|
27.1
|
|
|
$
|
187.2
|
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Computation of Income (Loss) per Share
|
(In millions, except per share data)
|
||||||||||
Net income (loss)
|
$
|
549.5
|
|
|
$
|
(3.9
|
)
|
|
$
|
(1.4
|
)
|
Basic shares
|
166.2
|
|
|
165.2
|
|
|
103.4
|
|
|||
Basic net income (loss) per share
|
$
|
3.31
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
Diluted shares:
|
|
|
|
|
|
||||||
Basic shares
|
166.2
|
|
|
165.2
|
|
|
103.4
|
|
|||
Stock-based compensation
|
2.3
|
|
|
—
|
|
|
—
|
|
|||
Diluted shares
|
168.5
|
|
|
165.2
|
|
|
103.4
|
|
|||
Diluted net income (loss) per share
|
$
|
3.26
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Beginning balance
|
$
|
10.1
|
|
|
$
|
6.4
|
|
Provisions charged
|
2.3
|
|
|
4.5
|
|
||
Write-offs, net of recoveries
|
(0.1
|
)
|
|
(0.8
|
)
|
||
Ending balance
|
$
|
12.3
|
|
|
$
|
10.1
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Supplies
|
$
|
66.1
|
|
|
$
|
58.1
|
|
Raw materials
|
75.3
|
|
|
72.6
|
|
||
Work in process
|
127.8
|
|
|
110.7
|
|
||
Finished goods
|
462.6
|
|
|
424.9
|
|
||
|
731.8
|
|
|
666.3
|
|
||
LIFO reserves
|
(49.2
|
)
|
|
(35.9
|
)
|
||
Inventories, net
|
$
|
682.6
|
|
|
$
|
630.4
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Investments in non-consolidated affiliates
|
$
|
28.5
|
|
|
$
|
26.7
|
|
Deferred debt issuance costs
|
2.5
|
|
|
2.6
|
|
||
Tax-related receivables
|
10.2
|
|
|
17.5
|
|
||
Interest rate swaps
|
3.6
|
|
|
7.7
|
|
||
Supply contracts
|
1,137.1
|
|
|
566.7
|
|
||
Other
|
26.5
|
|
|
23.2
|
|
||
Other assets
|
$
|
1,208.4
|
|
|
$
|
644.4
|
|
|
|
|
December 31,
|
||||||
|
Useful Lives
|
|
2017
|
|
2016
|
||||
|
|
|
($ in millions)
|
||||||
Land and improvements to land
|
10-20 Years
|
|
$
|
281.7
|
|
|
$
|
281.2
|
|
Buildings and building equipment
|
10-30 Years
|
|
382.4
|
|
|
375.0
|
|
||
Machinery and equipment
|
3-15 Years
|
|
5,028.4
|
|
|
4,765.9
|
|
||
Leasehold improvements
|
|
|
3.9
|
|
|
3.4
|
|
||
Construction in progress
|
|
|
212.5
|
|
|
171.0
|
|
||
Property, plant and equipment
|
|
|
5,908.9
|
|
|
5,596.5
|
|
||
Accumulated depreciation
|
|
|
(2,333.1
|
)
|
|
(1,891.6
|
)
|
||
Property, plant and equipment, net
|
|
|
$
|
3,575.8
|
|
|
$
|
3,704.9
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Bay Gas
|
$
|
28.5
|
|
|
$
|
26.7
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
($ in millions)
|
||||||||||
Bay Gas
|
$
|
1.8
|
|
|
$
|
1.7
|
|
|
$
|
1.7
|
|
|
Chlor Alkali Products and Vinyls
|
|
Epoxy
|
|
Total
|
||||||
|
($ in millions)
|
||||||||||
Balance at January 1, 2016
|
$
|
1,877.5
|
|
|
$
|
296.6
|
|
|
$
|
2,174.1
|
|
Acquisition activity
|
(45.3
|
)
|
|
(9.7
|
)
|
|
(55.0
|
)
|
|||
Foreign currency translation adjustment
|
(0.9
|
)
|
|
(0.2
|
)
|
|
(1.1
|
)
|
|||
Balance at December 31, 2016
|
1,831.3
|
|
|
286.7
|
|
|
2,118.0
|
|
|||
Foreign currency translation adjustment
|
1.6
|
|
|
0.4
|
|
|
2.0
|
|
|||
Balance at December 31, 2017
|
$
|
1,832.9
|
|
|
$
|
287.1
|
|
|
$
|
2,120.0
|
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
Useful Lives
|
|
Gross Amount
|
|
Accumulated Amortization
|
|
Net
|
|
Gross Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
|
|
|
($ in millions)
|
||||||||||||||||||||||
Customers, customer contracts and relationships
|
10-15 Years
|
|
$
|
679.5
|
|
|
$
|
(163.6
|
)
|
|
$
|
515.9
|
|
|
$
|
667.8
|
|
|
$
|
(112.9
|
)
|
|
$
|
554.9
|
|
Trade name
|
5 Years
|
|
7.1
|
|
|
(3.2
|
)
|
|
3.9
|
|
|
17.8
|
|
|
(12.7
|
)
|
|
5.1
|
|
||||||
Acquired technology
|
7 Years
|
|
86.1
|
|
|
(27.7
|
)
|
|
58.4
|
|
|
84.2
|
|
|
(15.0
|
)
|
|
69.2
|
|
||||||
Other
|
4-10 Years
|
|
2.3
|
|
|
(2.0
|
)
|
|
0.3
|
|
|
2.3
|
|
|
(1.9
|
)
|
|
0.4
|
|
||||||
Total intangible assets
|
|
|
$
|
775.0
|
|
|
$
|
(196.5
|
)
|
|
$
|
578.5
|
|
|
$
|
772.1
|
|
|
$
|
(142.5
|
)
|
|
$
|
629.6
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Notes payable:
|
($ in millions)
|
||||||
Variable-rate Senior Term Loan Facility, due 2022 and 2020, respectively, (3.57% and 2.77% at December 31, 2017 and 2016, respectively)
|
$
|
1,323.4
|
|
|
$
|
1,282.5
|
|
Variable-rate Sumitomo Credit Facility, due 2018 (2.27% at December 31, 2016)
|
—
|
|
|
590.0
|
|
||
Variable-rate Recovery Zone bonds, due 2024-2035 (3.27% and 2.47% at December 31, 2017 and 2016, respectively)
|
103.0
|
|
|
103.0
|
|
||
Variable-rate Go Zone bonds, due 2024 (3.27% and 2.47% at December 31, 2017 and 2016, respectively)
|
50.0
|
|
|
50.0
|
|
||
Variable-rate Industrial development and environmental improvement obligations, due 2025 (1.27% and 0.25% at December 31, 2017 and 2016, respectively)
|
2.9
|
|
|
2.9
|
|
||
9.75%, due 2023
|
720.0
|
|
|
720.0
|
|
||
10.00%, due 2025
|
500.0
|
|
|
500.0
|
|
||
5.50%, due 2022
|
200.0
|
|
|
200.0
|
|
||
5.125%, due 2027
|
500.0
|
|
|
—
|
|
||
7.23%, SunBelt Notes due 2013-2017
|
—
|
|
|
12.2
|
|
||
Senior Revolving Credit Facility
|
20.0
|
|
|
—
|
|
||
Receivables Financing Agreement
|
249.7
|
|
|
210.0
|
|
||
Capital lease obligations
|
3.7
|
|
|
3.9
|
|
||
Total notes payable
|
3,672.7
|
|
|
3,674.5
|
|
||
Deferred debt issuance costs
|
(32.6
|
)
|
|
(28.5
|
)
|
||
Interest rate swaps
|
(28.1
|
)
|
|
(28.4
|
)
|
||
Total debt
|
3,612.0
|
|
|
3,617.6
|
|
||
Amounts due within one year
|
0.7
|
|
|
80.5
|
|
||
Total long-term debt
|
$
|
3,611.3
|
|
|
$
|
3,537.1
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
($ in millions)
|
|
($ in millions)
|
||||||||||||||||||||
Change in Benefit Obligation
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Benefit obligation at beginning of year
|
$
|
2,466.2
|
|
|
$
|
251.0
|
|
|
$
|
2,717.2
|
|
|
$
|
2,458.5
|
|
|
$
|
227.4
|
|
|
$
|
2,685.9
|
|
Service cost
|
1.2
|
|
|
7.9
|
|
|
9.1
|
|
|
1.3
|
|
|
7.6
|
|
|
8.9
|
|
||||||
Interest cost
|
81.3
|
|
|
5.3
|
|
|
86.6
|
|
|
82.4
|
|
|
5.3
|
|
|
87.7
|
|
||||||
Actuarial loss
|
161.7
|
|
|
9.6
|
|
|
171.3
|
|
|
88.7
|
|
|
20.4
|
|
|
109.1
|
|
||||||
Benefits paid
|
(130.5
|
)
|
|
(4.2
|
)
|
|
(134.7
|
)
|
|
(132.2
|
)
|
|
(3.4
|
)
|
|
(135.6
|
)
|
||||||
Plan participant’s contributions
|
—
|
|
|
1.0
|
|
|
1.0
|
|
|
—
|
|
|
0.9
|
|
|
0.9
|
|
||||||
Plan amendments
|
—
|
|
|
1.7
|
|
|
1.7
|
|
|
—
|
|
|
(1.2
|
)
|
|
(1.2
|
)
|
||||||
Business combination
|
—
|
|
|
—
|
|
|
—
|
|
|
(32.5
|
)
|
|
—
|
|
|
(32.5
|
)
|
||||||
Currency translation adjustments
|
—
|
|
|
31.1
|
|
|
31.1
|
|
|
—
|
|
|
(6.0
|
)
|
|
(6.0
|
)
|
||||||
Benefit obligation at end of year
|
$
|
2,579.9
|
|
|
$
|
303.4
|
|
|
$
|
2,883.3
|
|
|
$
|
2,466.2
|
|
|
$
|
251.0
|
|
|
$
|
2,717.2
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
($ in millions)
|
|
($ in millions)
|
||||||||||||||||||||
Change in Plan Assets
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Fair value of plans’ assets at beginning of year
|
$
|
2,012.0
|
|
|
$
|
66.5
|
|
|
$
|
2,078.5
|
|
|
$
|
1,974.0
|
|
|
$
|
62.5
|
|
|
$
|
2,036.5
|
|
Actual return on plans’ assets
|
290.6
|
|
|
5.0
|
|
|
295.6
|
|
|
191.5
|
|
|
3.5
|
|
|
195.0
|
|
||||||
Employer contributions
|
0.4
|
|
|
2.2
|
|
|
2.6
|
|
|
6.4
|
|
|
2.0
|
|
|
8.4
|
|
||||||
Benefits paid
|
(130.5
|
)
|
|
(3.0
|
)
|
|
(133.5
|
)
|
|
(132.2
|
)
|
|
(3.4
|
)
|
|
(135.6
|
)
|
||||||
Business combination
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.7
|
)
|
|
—
|
|
|
(27.7
|
)
|
||||||
Currency translation adjustments
|
—
|
|
|
3.7
|
|
|
3.7
|
|
|
—
|
|
|
1.9
|
|
|
1.9
|
|
||||||
Fair value of plans’ assets at end of year
|
$
|
2,172.5
|
|
|
$
|
74.4
|
|
|
$
|
2,246.9
|
|
|
$
|
2,012.0
|
|
|
$
|
66.5
|
|
|
$
|
2,078.5
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
($ in millions)
|
|
($ in millions)
|
||||||||||||||||||||
Funded Status
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Qualified plans
|
$
|
(403.7
|
)
|
|
$
|
(226.9
|
)
|
|
$
|
(630.6
|
)
|
|
$
|
(450.6
|
)
|
|
$
|
(182.6
|
)
|
|
$
|
(633.2
|
)
|
Non-qualified plans
|
(3.7
|
)
|
|
(2.1
|
)
|
|
(5.8
|
)
|
|
(3.6
|
)
|
|
(1.9
|
)
|
|
(5.5
|
)
|
||||||
Total funded status
|
$
|
(407.4
|
)
|
|
$
|
(229.0
|
)
|
|
$
|
(636.4
|
)
|
|
$
|
(454.2
|
)
|
|
$
|
(184.5
|
)
|
|
$
|
(638.7
|
)
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
($ in millions)
|
|
($ in millions)
|
||||||||||||||||||||
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Accrued benefit in current liabilities
|
$
|
(0.4
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
(0.6
|
)
|
Accrued benefit in noncurrent liabilities
|
(407.0
|
)
|
|
(228.9
|
)
|
|
(635.9
|
)
|
|
(453.8
|
)
|
|
(184.3
|
)
|
|
(638.1
|
)
|
||||||
Accumulated other comprehensive loss
|
735.1
|
|
|
51.4
|
|
|
786.5
|
|
|
743.1
|
|
|
43.5
|
|
|
786.6
|
|
||||||
Net balance sheet impact
|
$
|
327.7
|
|
|
$
|
(177.6
|
)
|
|
$
|
150.1
|
|
|
$
|
288.9
|
|
|
$
|
(141.0
|
)
|
|
$
|
147.9
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Projected benefit obligation
|
$
|
2,883.3
|
|
|
$
|
2,717.2
|
|
Accumulated benefit obligation
|
2,851.0
|
|
|
2,685.7
|
|
||
Fair value of plan assets
|
2,246.9
|
|
|
2,078.5
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Components of Net Periodic Benefit (Income) Costs
|
($ in millions)
|
||||||||||
Service cost
|
$
|
17.1
|
|
|
$
|
12.3
|
|
|
$
|
7.8
|
|
Interest cost
|
86.6
|
|
|
87.7
|
|
|
83.3
|
|
|||
Expected return on plans’ assets
|
(157.1
|
)
|
|
(157.8
|
)
|
|
(147.4
|
)
|
|||
Amortization of prior service cost
|
2.2
|
|
|
—
|
|
|
1.6
|
|
|||
Recognized actuarial loss
|
24.8
|
|
|
20.7
|
|
|
26.2
|
|
|||
Curtailments/settlements
|
—
|
|
|
—
|
|
|
47.2
|
|
|||
Net periodic benefit (income) costs
|
$
|
(26.4
|
)
|
|
$
|
(37.1
|
)
|
|
$
|
18.7
|
|
|
|
|
|
|
|
||||||
Included in Other Comprehensive Loss (Pretax)
|
|
|
|
|
|
||||||
Liability adjustment
|
$
|
26.9
|
|
|
$
|
66.1
|
|
|
$
|
125.4
|
|
Amortization of prior service costs and actuarial losses
|
(27.0
|
)
|
|
(20.7
|
)
|
|
(62.4
|
)
|
|
U.S. Pension Benefits
|
|
Foreign Pension Benefits
|
||||||||||||||
Weighted-Average Assumptions
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||
Discount rate—periodic benefit cost
|
4.1
|
%
|
(1)
|
4.4
|
%
|
|
3.9
|
%
|
|
2.3
|
%
|
|
2.7
|
%
|
|
2.8
|
%
|
Expected return on assets
|
7.75
|
%
|
|
7.75
|
%
|
|
7.75
|
%
|
|
5.6
|
%
|
|
6.0
|
%
|
|
6.0
|
%
|
Rate of compensation increase
|
3.0
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
Discount rate—benefit obligation
|
3.6
|
%
|
|
4.1
|
%
|
|
4.4
|
%
|
|
2.2
|
%
|
|
2.3
|
%
|
|
2.7
|
%
|
(1)
|
The discount rate—periodic benefit cost for our domestic qualified pension plan is comprised of the discount rate used to determine interest costs of
3.4%
and the discount rate used to determine service costs of
4.2%
.
|
|
Percentage of Plan Assets
|
||||
Asset Class
|
2017
|
|
2016
|
||
U.S. equities
|
19
|
%
|
|
19
|
%
|
Non-U.S. equities
|
17
|
%
|
|
15
|
%
|
Fixed income/cash
|
24
|
%
|
|
35
|
%
|
Alternative investments
|
21
|
%
|
|
20
|
%
|
Absolute return strategies
|
19
|
%
|
|
11
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
Asset Class
|
Target Allocation
|
|
Target Range
|
|
U.S. equities
(1)
|
27
|
%
|
|
19-35
|
Non-U.S. equities
(1)
|
18
|
%
|
|
4-34
|
Fixed income/cash
(1)
|
29
|
%
|
|
20-72
|
Alternative investments
|
6
|
%
|
|
0-28
|
Absolute return strategies
|
20
|
%
|
|
10-30
|
(1)
|
The target allocation for these asset classes include alternative investments, primarily hedge funds, based on the underlying investments in each hedge fund.
|
Asset Class
|
Investments Measured at NAV
|
|
Quoted Prices
In Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
|
||||||||||
|
|
|
($ in millions)
|
||||||||||||||||
Equity securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. equities
|
$
|
230.7
|
|
|
$
|
203.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
434.4
|
|
Non-U.S. equities
|
321.9
|
|
|
55.6
|
|
|
14.6
|
|
|
—
|
|
|
392.1
|
|
|||||
Fixed income/cash
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash
|
—
|
|
|
41.9
|
|
|
—
|
|
|
—
|
|
|
41.9
|
|
|||||
Government treasuries
|
0.7
|
|
|
—
|
|
|
151.2
|
|
|
—
|
|
|
151.9
|
|
|||||
Corporate debt instruments
|
80.9
|
|
|
—
|
|
|
115.1
|
|
|
—
|
|
|
196.0
|
|
|||||
Asset-backed securities
|
104.3
|
|
|
—
|
|
|
44.0
|
|
|
—
|
|
|
148.3
|
|
|||||
Alternative investments
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedge fund of funds
|
430.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
430.7
|
|
|||||
Real estate funds
|
21.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.8
|
|
|||||
Private equity funds
|
11.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.5
|
|
|||||
Absolute return strategies
|
418.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
418.3
|
|
|||||
Total assets
|
$
|
1,620.8
|
|
|
$
|
301.2
|
|
|
$
|
324.9
|
|
|
$
|
—
|
|
|
$
|
2,246.9
|
|
Asset Class
|
Investments Measured at NAV
|
|
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||||
|
|
|
($ in millions)
|
||||||||||||||||
Equity securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. equities
|
$
|
241.4
|
|
|
$
|
143.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
384.6
|
|
Non-U.S. equities
|
248.6
|
|
|
38.6
|
|
|
29.9
|
|
|
—
|
|
|
317.1
|
|
|||||
Fixed income/cash
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash
|
—
|
|
|
259.6
|
|
|
—
|
|
|
—
|
|
|
259.6
|
|
|||||
Government treasuries
|
18.2
|
|
|
—
|
|
|
169.4
|
|
|
—
|
|
|
187.6
|
|
|||||
Corporate debt instruments
|
51.8
|
|
|
0.2
|
|
|
129.6
|
|
|
—
|
|
|
181.6
|
|
|||||
Asset-backed securities
|
61.4
|
|
|
—
|
|
|
36.4
|
|
|
—
|
|
|
97.8
|
|
|||||
Alternative investments
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Hedge fund of funds
|
380.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
380.6
|
|
|||||
Real estate funds
|
22.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22.5
|
|
|||||
Private equity funds
|
16.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.4
|
|
|||||
Absolute return strategies
|
230.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
230.7
|
|
|||||
Total assets
|
$
|
1,271.6
|
|
|
$
|
441.6
|
|
|
$
|
365.3
|
|
|
$
|
—
|
|
|
$
|
2,078.5
|
|
|
December 31, 2015
|
|
Realized
Gain/(Loss)
|
|
Unrealized Gain/(Loss) Relating to Assets Held at Period End
|
|
Purchases, Sales, Settlements, and Other
|
|
Transfers
In/(Out)
|
|
December 31, 2016
|
||||||||||||
|
($ in millions)
|
||||||||||||||||||||||
Acquisition plan receivable
|
$
|
212.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(212.0
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
($ in millions)
|
|
($ in millions)
|
||||||||||||||||||||
Change in Benefit Obligation
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Benefit obligation at beginning of year
|
$
|
43.6
|
|
|
$
|
8.6
|
|
|
$
|
52.2
|
|
|
$
|
53.9
|
|
|
$
|
8.1
|
|
|
$
|
62.0
|
|
Service cost
|
0.8
|
|
|
0.3
|
|
|
1.1
|
|
|
0.8
|
|
|
0.4
|
|
|
1.2
|
|
||||||
Interest cost
|
1.2
|
|
|
0.3
|
|
|
1.5
|
|
|
1.2
|
|
|
0.4
|
|
|
1.6
|
|
||||||
Actuarial (gain) loss
|
(0.6
|
)
|
|
1.0
|
|
|
0.4
|
|
|
(5.1
|
)
|
|
—
|
|
|
(5.1
|
)
|
||||||
Benefits paid
|
(4.4
|
)
|
|
(0.3
|
)
|
|
(4.7
|
)
|
|
(7.2
|
)
|
|
(0.4
|
)
|
|
(7.6
|
)
|
||||||
Currency translation adjustments
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||||
Benefit obligation at end of year
|
$
|
40.6
|
|
|
$
|
10.2
|
|
|
$
|
50.8
|
|
|
$
|
43.6
|
|
|
$
|
8.6
|
|
|
$
|
52.2
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
($ in millions)
|
|
($ in millions)
|
||||||||||||||||||||
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Funded status
|
$
|
(40.6
|
)
|
|
$
|
(10.2
|
)
|
|
$
|
(50.8
|
)
|
|
$
|
(43.6
|
)
|
|
$
|
(8.6
|
)
|
|
$
|
(52.2
|
)
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
($ in millions)
|
|
($ in millions)
|
||||||||||||||||||||
|
U.S.
|
|
Foreign
|
|
Total
|
|
U.S.
|
|
Foreign
|
|
Total
|
||||||||||||
Accrued benefit in current liabilities
|
$
|
(4.0
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(4.3
|
)
|
|
$
|
(4.8
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(5.1
|
)
|
Accrued benefit in noncurrent liabilities
|
(36.6
|
)
|
|
(9.9
|
)
|
|
(46.5
|
)
|
|
(38.8
|
)
|
|
(8.3
|
)
|
|
(47.1
|
)
|
||||||
Accumulated other comprehensive loss
|
24.7
|
|
|
0.9
|
|
|
25.6
|
|
|
24.8
|
|
|
0.3
|
|
|
25.1
|
|
||||||
Net balance sheet impact
|
$
|
(15.9
|
)
|
|
$
|
(9.3
|
)
|
|
$
|
(25.2
|
)
|
|
$
|
(18.8
|
)
|
|
$
|
(8.3
|
)
|
|
$
|
(27.1
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Components of Net Periodic Benefit Cost
|
($ in millions)
|
||||||||||
Service cost
|
$
|
1.1
|
|
|
$
|
1.2
|
|
|
$
|
1.2
|
|
Interest cost
|
1.5
|
|
|
1.6
|
|
|
2.3
|
|
|||
Amortization of prior service cost
|
(2.2
|
)
|
|
(2.6
|
)
|
|
—
|
|
|||
Recognized actuarial loss
|
2.1
|
|
|
2.3
|
|
|
3.1
|
|
|||
Curtailment
|
—
|
|
|
—
|
|
|
0.1
|
|
|||
Net periodic benefit cost
|
$
|
2.5
|
|
|
$
|
2.5
|
|
|
$
|
6.7
|
|
|
|
|
|
|
|
||||||
Included in Other Comprehensive Loss (Pretax)
|
|
|
|
|
|
||||||
Liability adjustment
|
$
|
0.4
|
|
|
$
|
(5.1
|
)
|
|
$
|
(0.1
|
)
|
Amortization of prior service costs and actuarial losses
|
0.1
|
|
|
0.3
|
|
|
(3.2
|
)
|
|
December 31,
|
|||||||
Weighted-Average Assumptions
|
2017
|
|
2016
|
|
2015
|
|||
Discount rate—periodic benefit cost
|
3.8
|
%
|
|
4.1
|
%
|
|
3.7
|
%
|
Discount rate—benefit obligation
|
3.5
|
%
|
|
3.8
|
%
|
|
4.1
|
%
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Healthcare cost trend rate assumed for next year
|
8.0
|
%
|
|
8.0
|
%
|
Rate that the cost trend rate gradually declines to
|
4.5
|
%
|
|
5.0
|
%
|
Year that the rate reaches the ultimate rate
|
2024
|
|
|
2022
|
|
|
One-Percentage
Point Increase |
|
One-Percentage
Point Decrease |
||||
|
($ in millions)
|
||||||
Effect on total of service and interest costs
|
$
|
0.5
|
|
|
$
|
(0.2
|
)
|
Effect on postretirement benefit obligation
|
1.7
|
|
|
(1.5
|
)
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Components of Income (Loss) Before Taxes
|
($ in millions)
|
||||||||||
Domestic
|
$
|
53.3
|
|
|
$
|
(23.3
|
)
|
|
$
|
(66.9
|
)
|
Foreign
|
63.9
|
|
|
(10.9
|
)
|
|
73.6
|
|
|||
Income (loss) before taxes
|
$
|
117.2
|
|
|
$
|
(34.2
|
)
|
|
$
|
6.7
|
|
Components of Income Tax (Benefit) Provision
|
|
|
|
|
|
||||||
Current (benefit) expense:
|
|
|
|
|
|
||||||
Federal
|
$
|
(4.0
|
)
|
|
$
|
(11.6
|
)
|
|
$
|
(16.6
|
)
|
State
|
3.0
|
|
|
0.9
|
|
|
1.2
|
|
|||
Foreign
|
24.1
|
|
|
15.7
|
|
|
14.4
|
|
|||
|
23.1
|
|
|
5.0
|
|
|
(1.0
|
)
|
|||
Deferred (benefit) expense:
|
|
|
|
|
|
||||||
Federal
|
$
|
(549.6
|
)
|
|
$
|
(10.1
|
)
|
|
$
|
8.9
|
|
State
|
14.6
|
|
|
(5.1
|
)
|
|
(2.4
|
)
|
|||
Foreign
|
79.6
|
|
|
(20.1
|
)
|
|
2.6
|
|
|||
|
(455.4
|
)
|
|
(35.3
|
)
|
|
9.1
|
|
|||
Income tax (benefit) provision
|
$
|
(432.3
|
)
|
|
$
|
(30.3
|
)
|
|
$
|
8.1
|
|
|
Years ended December 31,
|
|||||||
Effective Tax Rate Reconciliation (Percent)
|
2017
|
|
2016
|
|
2015
|
|||
Statutory federal tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State income taxes, net
|
(1.2
|
)
|
|
8.0
|
|
|
(38.2
|
)
|
Foreign rate differential
|
(7.7
|
)
|
|
(25.1
|
)
|
|
(129.8
|
)
|
U.S. tax on foreign earnings
|
(70.8
|
)
|
|
24.4
|
|
|
128.6
|
|
Salt depletion
|
(16.1
|
)
|
|
45.4
|
|
|
(38.8
|
)
|
Non-deductible transaction costs
|
—
|
|
|
—
|
|
|
133.1
|
|
Change in valuation allowance
|
76.0
|
|
|
(0.7
|
)
|
|
27.9
|
|
Remeasurement of U.S. state deferred taxes
|
10.2
|
|
|
9.4
|
|
|
7.6
|
|
Change in tax contingencies
|
(7.7
|
)
|
|
(9.7
|
)
|
|
5.0
|
|
U.S. Tax Cuts and Jobs Act
|
(373.5
|
)
|
|
—
|
|
|
—
|
|
Share-based payments
|
(5.7
|
)
|
|
—
|
|
|
—
|
|
Dividends paid to Contributing Employee Ownership Plan
|
(0.6
|
)
|
|
2.8
|
|
|
(11.1
|
)
|
Return to provision
|
(0.6
|
)
|
|
5.3
|
|
|
(4.2
|
)
|
U.S. Federal tax credits
|
(4.2
|
)
|
|
0.6
|
|
|
(3.1
|
)
|
Other, net
|
(2.0
|
)
|
|
(6.8
|
)
|
|
8.9
|
|
Effective tax rate
|
(368.9
|
)%
|
|
88.6
|
%
|
|
120.9
|
%
|
|
December 31,
|
||||||
Components of Deferred Tax Assets and Liabilities
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Deferred tax assets:
|
|
||||||
Pension and postretirement benefits
|
$
|
147.3
|
|
|
$
|
226.1
|
|
Environmental reserves
|
33.2
|
|
|
54.5
|
|
||
Asset retirement obligations
|
14.0
|
|
|
22.0
|
|
||
Accrued liabilities
|
37.6
|
|
|
53.0
|
|
||
Tax credits
|
37.1
|
|
|
13.2
|
|
||
Net operating losses
|
53.3
|
|
|
105.3
|
|
||
Capital loss carryforward
|
2.1
|
|
|
2.8
|
|
||
Other miscellaneous items
|
11.2
|
|
|
—
|
|
||
Total deferred tax assets
|
335.8
|
|
|
476.9
|
|
||
Valuation allowance
|
(121.4
|
)
|
|
(29.0
|
)
|
||
Net deferred tax assets
|
214.4
|
|
|
447.9
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
550.3
|
|
|
875.5
|
|
||
Intangible amortization
|
67.3
|
|
|
137.3
|
|
||
Inventory and prepaids
|
1.0
|
|
|
13.6
|
|
||
Partnerships
|
67.5
|
|
|
106.3
|
|
||
Taxes on unremitted earnings
|
3.1
|
|
|
223.6
|
|
||
Other miscellaneous items
|
—
|
|
|
4.6
|
|
||
Total deferred tax liabilities
|
689.2
|
|
|
1,360.9
|
|
||
Net deferred tax liability
|
$
|
(474.8
|
)
|
|
$
|
(913.0
|
)
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Beginning balance
|
$
|
29.0
|
|
|
$
|
29.3
|
|
Increases to valuation allowances
|
94.5
|
|
|
8.4
|
|
||
Acquisition activity
|
—
|
|
|
(4.3
|
)
|
||
U.S. Tax Cuts and Jobs Act
|
2.2
|
|
|
—
|
|
||
Decreases to valuation allowances
|
(5.0
|
)
|
|
(4.4
|
)
|
||
Currency translation adjustment
|
0.7
|
|
|
—
|
|
||
Ending balance
|
$
|
121.4
|
|
|
$
|
29.0
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Beginning balance
|
$
|
38.4
|
|
|
$
|
35.1
|
|
Increase for current year tax positions
|
2.9
|
|
|
1.7
|
|
||
Increase for prior year tax positions
|
5.4
|
|
|
5.8
|
|
||
Reductions due to statute of limitations
|
(0.1
|
)
|
|
(0.3
|
)
|
||
Decrease for prior year tax positions
|
(9.2
|
)
|
|
(1.8
|
)
|
||
Decrease due to tax settlements
|
(1.1
|
)
|
|
(2.1
|
)
|
||
Ending balance
|
$
|
36.3
|
|
|
$
|
38.4
|
|
|
Tax Years
|
U.S. federal income tax
|
2013 - 2016
|
U.S. state income tax
|
2006 - 2016
|
Canadian federal income tax
|
2012 - 2016
|
Brazil
|
2014 - 2016
|
Germany
|
2015 - 2016
|
China
|
2014 - 2016
|
The Netherlands
|
2014 - 2016
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Accrued compensation and payroll taxes
|
$
|
82.5
|
|
|
$
|
77.8
|
|
Tax-related accruals
|
34.4
|
|
|
40.9
|
|
||
Accrued interest
|
37.4
|
|
|
30.7
|
|
||
Legal and professional costs
|
31.8
|
|
|
21.2
|
|
||
Accrued employee benefits
|
21.7
|
|
|
21.2
|
|
||
Environmental (current portion only)
|
20.0
|
|
|
17.0
|
|
||
Asset retirement obligation (current portion only)
|
10.5
|
|
|
12.6
|
|
||
Other
|
36.1
|
|
|
42.4
|
|
||
Accrued liabilities
|
$
|
274.4
|
|
|
$
|
263.8
|
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
($ in millions)
|
||||||||||
Stock-based compensation
|
$
|
18.7
|
|
|
$
|
11.2
|
|
|
$
|
11.5
|
|
Mark-to-market adjustments
|
4.5
|
|
|
3.0
|
|
|
(3.0
|
)
|
|||
Total expense
|
$
|
23.2
|
|
|
$
|
14.2
|
|
|
$
|
8.5
|
|
|
|
|
|
|
|
|
Exercisable
|
||||||||
|
Shares
|
|
Option Price
|
|
Weighted-Average
Option Price |
|
Options
|
|
Weighted-Average
Exercise Price |
||||||
Outstanding at January 1, 2017
|
5,734,740
|
|
|
$13.14-27.65
|
|
$
|
19.25
|
|
|
3,407,300
|
|
|
$
|
20.56
|
|
Granted
|
1,621,000
|
|
|
29.75-31.90
|
|
29.82
|
|
|
|
|
|
||||
Exercised
|
(1,791,865
|
)
|
|
13.14-27.40
|
|
18.09
|
|
|
|
|
|
||||
Canceled
|
(221,349
|
)
|
|
13.14-29.75
|
|
22.14
|
|
|
|
|
|
||||
Outstanding at December 31, 2017
|
5,342,526
|
|
|
$13.14-31.90
|
|
$
|
22.72
|
|
|
2,603,962
|
|
|
$
|
21.78
|
|
Range of
Exercise Prices |
|
Options
Exercisable |
|
Weighted-Average
Exercise Price |
|
Options
Outstanding |
|
Weighted-Average
Exercise Price |
||||||
Under $20.00
|
|
788,749
|
|
|
$
|
15.05
|
|
|
1,782,327
|
|
|
$
|
13.98
|
|
$20.00 - $25.00
|
|
855,668
|
|
|
22.69
|
|
|
855,668
|
|
|
22.69
|
|
||
Over $25.00
|
|
959,545
|
|
|
26.50
|
|
|
2,704,531
|
|
|
28.49
|
|
||
|
|
2,603,962
|
|
|
|
|
5,342,526
|
|
|
|
|
Number of Shares
|
||||
Stock Option Plans
|
Reserved for Issuance
|
|
Available for
Grant or Purchase (1) |
||
2000 long term incentive plan
|
151,157
|
|
|
82,194
|
|
2003 long term incentive plan
|
290,389
|
|
|
61,205
|
|
2006 long term incentive plan
|
375,550
|
|
|
63,949
|
|
2009 long term incentive plan
|
2,110,063
|
|
|
143,310
|
|
2014 long term incentive plan
|
2,844,441
|
|
|
517,991
|
|
2016 long term incentive plan
|
6,000,000
|
|
|
4,513,000
|
|
Total under stock option plans
|
11,771,600
|
|
|
5,381,649
|
|
|
Number of Shares
|
||||
Stock Purchase Plans
|
Reserved for Issuance
|
|
Available for
Grant or Purchase |
||
1997 stock plan for non-employee directors
|
544,027
|
|
|
416,766
|
|
Employee deferral plan
|
45,627
|
|
|
45,623
|
|
Total under stock purchase plans
|
589,654
|
|
|
462,389
|
|
(1)
|
All available to be issued as stock options, but includes a sub-limit for all types of stock awards of
2,856,933
shares.
|
|
To Settle in Cash
|
|
To Settle in Shares
|
||||||||||
|
Shares
|
|
Weighted-Average
Fair Value per Share |
|
Shares
|
|
Weighted-Average
Fair Value per Share |
||||||
Outstanding at January 1, 2017
|
542,828
|
|
|
$
|
25.84
|
|
|
536,575
|
|
|
$
|
16.18
|
|
Granted
|
154,550
|
|
|
30.05
|
|
|
154,550
|
|
|
30.02
|
|
||
Paid/Issued
|
(41,514
|
)
|
|
25.84
|
|
|
(40,500
|
)
|
|
25.57
|
|
||
Converted from shares to cash
|
82,625
|
|
|
17.47
|
|
|
(82,625
|
)
|
|
17.47
|
|
||
Canceled
|
(87,800
|
)
|
|
26.02
|
|
|
(87,800
|
)
|
|
15.16
|
|
||
Outstanding at December 31, 2017
|
650,689
|
|
|
$
|
35.62
|
|
|
480,200
|
|
|
$
|
19.81
|
|
Total vested at December 31, 2017
|
448,672
|
|
|
$
|
35.62
|
|
|
278,183
|
|
|
$
|
18.21
|
|
|
Shares
|
|
Weighted-Average
Fair Value per Share |
|||
Unvested at January 1, 2017
|
301,529
|
|
|
$
|
25.84
|
|
Granted
|
154,550
|
|
|
30.05
|
|
|
Vested
|
(166,262
|
)
|
|
35.62
|
|
|
Canceled
|
(87,800
|
)
|
|
26.02
|
|
|
Unvested at December 31, 2017
|
202,017
|
|
|
$
|
35.62
|
|
|
Foreign
Currency Translation Adjustment (net of taxes) |
|
Unrealized
Gains (Losses) on Derivative Contracts (net of taxes) |
|
Pension and
Postretirement Benefits (net of taxes) |
|
Accumulated
Other Comprehensive Loss |
||||||||
|
($ in millions)
|
||||||||||||||
Balance at January 1, 2015
|
$
|
(2.3
|
)
|
|
$
|
(4.2
|
)
|
|
$
|
(436.6
|
)
|
|
$
|
(443.1
|
)
|
Unrealized losses
|
(15.7
|
)
|
|
(13.9
|
)
|
|
(125.3
|
)
|
|
(154.9
|
)
|
||||
Reclassification adjustments into income
|
—
|
|
|
9.7
|
|
|
65.6
|
|
|
75.3
|
|
||||
Tax benefit
|
5.9
|
|
|
1.5
|
|
|
22.8
|
|
|
30.2
|
|
||||
Net change
|
(9.8
|
)
|
|
(2.7
|
)
|
|
(36.9
|
)
|
|
(49.4
|
)
|
||||
Balance at December 31, 2015
|
(12.1
|
)
|
|
(6.9
|
)
|
|
(473.5
|
)
|
|
(492.5
|
)
|
||||
Unrealized (losses) gains
|
(22.4
|
)
|
|
26.3
|
|
|
(61.0
|
)
|
|
(57.1
|
)
|
||||
Reclassification adjustments into income
|
—
|
|
|
5.8
|
|
|
20.4
|
|
|
26.2
|
|
||||
Tax benefit (provision)
|
10.4
|
|
|
(12.4
|
)
|
|
15.4
|
|
|
13.4
|
|
||||
Net change
|
(12.0
|
)
|
|
19.7
|
|
|
(25.2
|
)
|
|
(17.5
|
)
|
||||
Balance at December 31, 2016
|
(24.1
|
)
|
|
12.8
|
|
|
(498.7
|
)
|
|
(510.0
|
)
|
||||
Unrealized gains (losses)
|
55.6
|
|
|
1.9
|
|
|
(27.3
|
)
|
|
30.2
|
|
||||
Reclassification adjustments into income
|
—
|
|
|
(4.6
|
)
|
|
26.9
|
|
|
22.3
|
|
||||
Tax (provision) benefit
|
(23.9
|
)
|
|
1.0
|
|
|
(4.2
|
)
|
|
(27.1
|
)
|
||||
Net change
|
31.7
|
|
|
(1.7
|
)
|
|
(4.6
|
)
|
|
25.4
|
|
||||
Balance at December 31, 2017
|
$
|
7.6
|
|
|
$
|
11.1
|
|
|
$
|
(503.3
|
)
|
|
$
|
(484.6
|
)
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Sales:
|
($ in millions)
|
||||||||||
Chlor Alkali Products and Vinyls
|
$
|
3,500.8
|
|
|
$
|
2,999.3
|
|
|
$
|
1,713.4
|
|
Epoxy
|
2,086.4
|
|
|
1,822.0
|
|
|
429.6
|
|
|||
Winchester
|
681.2
|
|
|
729.3
|
|
|
711.4
|
|
|||
Total sales
|
$
|
6,268.4
|
|
|
$
|
5,550.6
|
|
|
$
|
2,854.4
|
|
Income (loss) before taxes:
|
|
|
|
|
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
405.8
|
|
|
$
|
224.9
|
|
|
$
|
115.5
|
|
Epoxy
|
(11.8
|
)
|
|
15.4
|
|
|
(7.5
|
)
|
|||
Winchester
|
72.4
|
|
|
120.9
|
|
|
115.6
|
|
|||
Corporate/Other
|
(86.5
|
)
|
|
(55.8
|
)
|
|
(40.6
|
)
|
|||
Restructuring charges
|
(37.6
|
)
|
|
(112.9
|
)
|
|
(2.7
|
)
|
|||
Acquisition-related costs
|
(12.8
|
)
|
|
(48.8
|
)
|
|
(123.4
|
)
|
|||
Other operating income
|
3.3
|
|
|
10.6
|
|
|
45.7
|
|
|||
Interest expense
|
(217.4
|
)
|
|
(191.9
|
)
|
|
(97.0
|
)
|
|||
Interest income
|
1.8
|
|
|
3.4
|
|
|
1.1
|
|
|||
Income (loss) before taxes
|
$
|
117.2
|
|
|
$
|
(34.2
|
)
|
|
$
|
6.7
|
|
Earnings of non-consolidated affiliates:
|
|
|
|
|
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
1.8
|
|
|
$
|
1.7
|
|
|
$
|
1.7
|
|
Depreciation and amortization expense:
|
|
|
|
|
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
432.2
|
|
|
$
|
418.1
|
|
|
$
|
186.1
|
|
Epoxy
|
94.3
|
|
|
90.0
|
|
|
20.9
|
|
|||
Winchester
|
19.5
|
|
|
18.5
|
|
|
17.4
|
|
|||
Corporate/Other
|
12.9
|
|
|
6.9
|
|
|
4.5
|
|
|||
Total depreciation and amortization expense
|
$
|
558.9
|
|
|
$
|
533.5
|
|
|
$
|
228.9
|
|
Capital spending:
|
|
|
|
|
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
209.5
|
|
|
$
|
195.1
|
|
|
$
|
94.5
|
|
Epoxy
|
37.9
|
|
|
45.4
|
|
|
7.7
|
|
|||
Winchester
|
22.5
|
|
|
19.5
|
|
|
25.6
|
|
|||
Corporate/Other
|
24.4
|
|
|
18.0
|
|
|
3.1
|
|
|||
Total capital spending
|
$
|
294.3
|
|
|
$
|
278.0
|
|
|
$
|
130.9
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Assets:
|
($ in millions)
|
||||||
Chlor Alkali Products and Vinyls
|
$
|
7,008.0
|
|
|
$
|
6,521.4
|
|
Epoxy
|
1,597.1
|
|
|
1,514.3
|
|
||
Winchester
|
425.2
|
|
|
424.0
|
|
||
Corporate/Other
|
188.0
|
|
|
302.9
|
|
||
Total assets
|
$
|
9,218.3
|
|
|
$
|
8,762.6
|
|
|
|
|
|
||||
Investments—affiliated companies (at equity):
|
|
|
|
||||
Chlor Alkali Products and Vinyls
|
$
|
28.5
|
|
|
$
|
26.7
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Long-lived assets:
|
($ in millions)
|
||||||
United States
|
$
|
3,211.9
|
|
|
$
|
3,352.2
|
|
Foreign
|
363.9
|
|
|
352.7
|
|
||
Total long-lived assets
|
$
|
3,575.8
|
|
|
$
|
3,704.9
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
($ in millions)
|
||||||
Beginning balance
|
$
|
137.3
|
|
|
$
|
138.1
|
|
Charges to income
|
10.3
|
|
|
9.2
|
|
||
Remedial and investigatory spending
|
(16.5
|
)
|
|
(10.3
|
)
|
||
Currency translation adjustments
|
0.5
|
|
|
0.3
|
|
||
Ending balance
|
$
|
131.6
|
|
|
$
|
137.3
|
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
($ in millions)
|
||||||||||
Charges to income
|
$
|
10.3
|
|
|
$
|
9.2
|
|
|
$
|
15.7
|
|
Recoveries from third parties of costs incurred and expensed
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|||
Environmental expense
|
$
|
8.5
|
|
|
$
|
9.2
|
|
|
$
|
15.7
|
|
|
Operating Leases
|
|
Purchase Commitments
|
||||
|
($ in millions)
|
||||||
2018
|
$
|
87.9
|
|
|
$
|
692.7
|
|
2019
|
67.4
|
|
|
645.0
|
|
||
2020
|
51.5
|
|
|
631.5
|
|
||
2021
|
36.9
|
|
|
708.3
|
|
||
2022
|
23.9
|
|
|
708.0
|
|
||
Thereafter
|
87.5
|
|
|
4,364.2
|
|
||
Total commitments
|
$
|
355.1
|
|
|
$
|
7,749.7
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Asset Derivatives:
|
|
|
|
||||
Other current assets
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Interest rate contracts - gains
|
$
|
6.9
|
|
|
$
|
1.9
|
|
Commodity contracts - gains
|
11.4
|
|
|
13.2
|
|
||
Commodity contracts - losses
|
(0.1
|
)
|
|
(1.7
|
)
|
||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign exchange contracts - losses
|
(1.0
|
)
|
|
(0.5
|
)
|
||
Foreign exchange contracts - gains
|
2.0
|
|
|
0.6
|
|
||
Total other current assets
|
19.2
|
|
|
13.5
|
|
||
Other assets
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Interest rate contracts - gains
|
3.6
|
|
|
7.7
|
|
||
Total other assets
|
3.6
|
|
|
7.7
|
|
||
Total Asset Derivatives
(1)
|
$
|
22.8
|
|
|
$
|
21.2
|
|
Liability Derivatives:
|
|
|
|
||||
Current installments of long-term debt
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Interest rate contracts - gains
|
$
|
—
|
|
|
$
|
0.1
|
|
Total current installments of long-term debt
|
—
|
|
|
0.1
|
|
||
Accrued liabilities
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Commodity contracts - losses
|
3.8
|
|
|
—
|
|
||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign exchange contracts - losses
|
—
|
|
|
1.7
|
|
||
Foreign exchange contracts - gains
|
—
|
|
|
(0.5
|
)
|
||
Total accrued liabilities
|
3.8
|
|
|
1.2
|
|
||
Other liabilities
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Interest rate contracts - losses
|
28.1
|
|
|
28.5
|
|
||
Total other liabilities
|
28.1
|
|
|
28.5
|
|
||
Total Liability Derivatives
(1)
|
$
|
31.9
|
|
|
$
|
29.8
|
|
(1)
|
Does not include the impact of cash collateral received from or provided to counterparties.
|
|
|
|
Amount of Gain (Loss)
|
||||||||||
|
|
|
Years Ended December 31,
|
||||||||||
|
Location of Gain (Loss)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Derivatives – Cash Flow Hedges
|
|
|
($ in millions)
|
||||||||||
Recognized in other comprehensive loss (effective portion):
|
|
|
|
|
|
|
|||||||
Commodity contracts
|
———
|
|
$
|
(2.1
|
)
|
|
$
|
16.7
|
|
|
$
|
(13.9
|
)
|
Interest rate contracts
|
———
|
|
4.0
|
|
|
9.6
|
|
|
—
|
|
|||
|
|
|
$
|
1.9
|
|
|
$
|
26.3
|
|
|
$
|
(13.9
|
)
|
Reclassified from accumulated other comprehensive loss into income (effective portion):
|
|
|
|
|
|
|
|||||||
Interest rate contracts
|
Interest expense
|
|
$
|
3.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commodity contracts
|
Cost of goods sold
|
|
1.5
|
|
|
(5.8
|
)
|
|
(9.7
|
)
|
|||
|
|
|
$
|
4.6
|
|
|
$
|
(5.8
|
)
|
|
$
|
(9.7
|
)
|
Derivatives – Fair Value Hedges
|
|
|
|
|
|
|
|||||||
Interest rate contracts
|
Interest expense
|
|
$
|
3.0
|
|
|
$
|
3.7
|
|
|
$
|
2.8
|
|
Derivatives Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|||||||
Commodity contracts
|
Cost of goods sold
|
|
$
|
—
|
|
|
$
|
(0.4
|
)
|
|
$
|
(2.2
|
)
|
Foreign exchange contracts
|
Selling and administration
|
|
1.8
|
|
|
(11.1
|
)
|
|
0.1
|
|
|||
|
|
|
$
|
1.8
|
|
|
$
|
(11.5
|
)
|
|
$
|
(2.1
|
)
|
Balance at December 31, 2017
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
Assets
|
($ in millions)
|
||||||||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
10.5
|
|
|
$
|
—
|
|
|
$
|
10.5
|
|
Commodity contracts
|
—
|
|
|
11.3
|
|
|
—
|
|
|
11.3
|
|
||||
Foreign exchange contracts
|
—
|
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swaps
|
—
|
|
|
28.1
|
|
|
—
|
|
|
28.1
|
|
||||
Commodity contracts
|
—
|
|
|
3.8
|
|
|
—
|
|
|
3.8
|
|
||||
Balance at December 31, 2016
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
9.6
|
|
|
$
|
—
|
|
|
9.6
|
|
|
Commodity contracts
|
—
|
|
|
11.5
|
|
|
—
|
|
|
11.5
|
|
||||
Foreign exchange contracts
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
28.6
|
|
|
—
|
|
|
28.6
|
|
||||
Foreign exchange contracts
|
—
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|
Fair Value Measurements
|
|
|
||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Amount recorded
on balance sheets |
||||||||||
|
($ in millions)
|
||||||||||||||||||
Balance at December 31, 2017
|
$
|
—
|
|
|
$
|
3,758.0
|
|
|
$
|
153.0
|
|
|
$
|
3,911.0
|
|
|
$
|
3,612.0
|
|
Balance at December 31, 2016
|
—
|
|
|
3,703.7
|
|
|
153.0
|
|
|
3,856.7
|
|
|
3,617.6
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|||||||||||||||||||
December 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
57.1
|
|
|
$
|
—
|
|
|
$
|
161.3
|
|
|
$
|
—
|
|
|
$
|
218.4
|
|
Receivables, net
|
95.6
|
|
|
—
|
|
|
637.6
|
|
|
—
|
|
|
733.2
|
|
|||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
2,093.2
|
|
|
(2,093.2
|
)
|
|
—
|
|
|||||
Income taxes receivable
|
11.7
|
|
|
—
|
|
|
6.3
|
|
|
(1.1
|
)
|
|
16.9
|
|
|||||
Inventories, net
|
155.4
|
|
|
—
|
|
|
527.2
|
|
|
—
|
|
|
682.6
|
|
|||||
Other current assets
|
206.2
|
|
|
—
|
|
|
5.3
|
|
|
(163.4
|
)
|
|
48.1
|
|
|||||
Total current assets
|
526.0
|
|
|
—
|
|
|
3,430.9
|
|
|
(2,257.7
|
)
|
|
1,699.2
|
|
|||||
Property, plant and equipment, net
|
544.4
|
|
|
—
|
|
|
3,031.4
|
|
|
—
|
|
|
3,575.8
|
|
|||||
Investment in subsidiaries
|
6,680.4
|
|
|
4,092.3
|
|
|
—
|
|
|
(10,772.7
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
38.1
|
|
|
—
|
|
|
34.5
|
|
|
(36.2
|
)
|
|
36.4
|
|
|||||
Other assets
|
45.9
|
|
|
—
|
|
|
1,162.5
|
|
|
—
|
|
|
1,208.4
|
|
|||||
Long-term receivables—affiliates
|
—
|
|
|
2,132.1
|
|
|
—
|
|
|
(2,132.1
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
0.3
|
|
|
5.7
|
|
|
572.5
|
|
|
—
|
|
|
578.5
|
|
|||||
Goodwill
|
—
|
|
|
966.3
|
|
|
1,153.7
|
|
|
—
|
|
|
2,120.0
|
|
|||||
Total assets
|
$
|
7,835.1
|
|
|
$
|
7,196.4
|
|
|
$
|
9,385.5
|
|
|
$
|
(15,198.7
|
)
|
|
$
|
9,218.3
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current installments of long-term debt
|
$
|
0.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.7
|
|
Accounts payable
|
83.2
|
|
|
—
|
|
|
590.0
|
|
|
(3.4
|
)
|
|
669.8
|
|
|||||
Intercompany payables
|
2,093.2
|
|
|
—
|
|
|
—
|
|
|
(2,093.2
|
)
|
|
—
|
|
|||||
Income taxes payable
|
—
|
|
|
—
|
|
|
10.5
|
|
|
(1.1
|
)
|
|
9.4
|
|
|||||
Accrued liabilities
|
117.7
|
|
|
—
|
|
|
318.1
|
|
|
(161.4
|
)
|
|
274.4
|
|
|||||
Total current liabilities
|
2,294.8
|
|
|
—
|
|
|
918.6
|
|
|
(2,259.1
|
)
|
|
954.3
|
|
|||||
Long-term debt
|
839.4
|
|
|
2,522.2
|
|
|
249.7
|
|
|
—
|
|
|
3,611.3
|
|
|||||
Accrued pension liability
|
406.7
|
|
|
—
|
|
|
229.2
|
|
|
—
|
|
|
635.9
|
|
|||||
Deferred income taxes
|
—
|
|
|
3.0
|
|
|
544.4
|
|
|
(36.2
|
)
|
|
511.2
|
|
|||||
Long-term payables—affiliates
|
1,250.0
|
|
|
—
|
|
|
882.1
|
|
|
(2,132.1
|
)
|
|
—
|
|
|||||
Other liabilities
|
290.5
|
|
|
5.6
|
|
|
455.8
|
|
|
—
|
|
|
751.9
|
|
|||||
Total liabilities
|
5,081.4
|
|
|
2,530.8
|
|
|
3,279.8
|
|
|
(4,427.4
|
)
|
|
6,464.6
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
167.1
|
|
|
—
|
|
|
14.6
|
|
|
(14.6
|
)
|
|
167.1
|
|
|||||
Additional paid-in capital
|
2,280.9
|
|
|
4,125.7
|
|
|
4,808.2
|
|
|
(8,933.9
|
)
|
|
2,280.9
|
|
|||||
Accumulated other comprehensive loss
|
(484.6
|
)
|
|
—
|
|
|
(4.6
|
)
|
|
4.6
|
|
|
(484.6
|
)
|
|||||
Retained earnings
|
790.3
|
|
|
539.9
|
|
|
1,287.5
|
|
|
(1,827.4
|
)
|
|
790.3
|
|
|||||
Total shareholders' equity
|
2,753.7
|
|
|
4,665.6
|
|
|
6,105.7
|
|
|
(10,771.3
|
)
|
|
2,753.7
|
|
|||||
Total liabilities and shareholders' equity
|
$
|
7,835.1
|
|
|
$
|
7,196.4
|
|
|
$
|
9,385.5
|
|
|
$
|
(15,198.7
|
)
|
|
$
|
9,218.3
|
|
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|||||||||||||||||||
December 31, 2016
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
25.2
|
|
|
$
|
—
|
|
|
$
|
159.3
|
|
|
$
|
—
|
|
|
$
|
184.5
|
|
Receivables, net
|
88.3
|
|
|
—
|
|
|
586.7
|
|
|
—
|
|
|
675.0
|
|
|||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
1,912.3
|
|
|
(1,912.3
|
)
|
|
—
|
|
|||||
Income taxes receivable
|
19.0
|
|
|
—
|
|
|
7.3
|
|
|
(0.8
|
)
|
|
25.5
|
|
|||||
Inventories, net
|
167.7
|
|
|
—
|
|
|
462.7
|
|
|
—
|
|
|
630.4
|
|
|||||
Other current assets
|
164.7
|
|
|
3.4
|
|
|
1.2
|
|
|
(138.5
|
)
|
|
30.8
|
|
|||||
Total current assets
|
464.9
|
|
|
3.4
|
|
|
3,129.5
|
|
|
(2,051.6
|
)
|
|
1,546.2
|
|
|||||
Property, plant and equipment, net
|
510.1
|
|
|
—
|
|
|
3,194.8
|
|
|
—
|
|
|
3,704.9
|
|
|||||
Investment in subsidiaries
|
6,035.2
|
|
|
3,734.7
|
|
|
—
|
|
|
(9,769.9
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
133.5
|
|
|
—
|
|
|
103.5
|
|
|
(117.5
|
)
|
|
119.5
|
|
|||||
Other assets
|
48.1
|
|
|
—
|
|
|
596.3
|
|
|
—
|
|
|
644.4
|
|
|||||
Long-term receivables—affiliates
|
—
|
|
|
2,194.2
|
|
|
—
|
|
|
(2,194.2
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
0.4
|
|
|
5.7
|
|
|
623.5
|
|
|
—
|
|
|
629.6
|
|
|||||
Goodwill
|
—
|
|
|
966.3
|
|
|
1,151.7
|
|
|
—
|
|
|
2,118.0
|
|
|||||
Total assets
|
$
|
7,192.2
|
|
|
$
|
6,904.3
|
|
|
$
|
8,799.3
|
|
|
$
|
(14,133.2
|
)
|
|
$
|
8,762.6
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current installments of long-term debt
|
$
|
0.6
|
|
|
67.5
|
|
|
$
|
12.4
|
|
|
—
|
|
|
$
|
80.5
|
|
||
Accounts payable
|
45.3
|
|
|
—
|
|
|
527.4
|
|
|
(1.9
|
)
|
|
570.8
|
|
|||||
Intercompany payables
|
1,882.8
|
|
|
29.5
|
|
|
—
|
|
|
(1,912.3
|
)
|
|
—
|
|
|||||
Income taxes payable
|
—
|
|
|
—
|
|
|
8.3
|
|
|
(0.8
|
)
|
|
7.5
|
|
|||||
Accrued liabilities
|
124.9
|
|
|
—
|
|
|
277.5
|
|
|
(138.6
|
)
|
|
263.8
|
|
|||||
Total current liabilities
|
2,053.6
|
|
|
97.0
|
|
|
825.6
|
|
|
(2,053.6
|
)
|
|
922.6
|
|
|||||
Long-term debt
|
913.9
|
|
|
2,413.3
|
|
|
209.9
|
|
|
—
|
|
|
3,537.1
|
|
|||||
Accrued pension liability
|
453.7
|
|
|
—
|
|
|
184.4
|
|
|
—
|
|
|
638.1
|
|
|||||
Deferred income taxes
|
—
|
|
|
223.6
|
|
|
926.4
|
|
|
(117.5
|
)
|
|
1,032.5
|
|
|||||
Long-term payables—affiliates
|
1,209.1
|
|
|
—
|
|
|
985.1
|
|
|
(2,194.2
|
)
|
|
—
|
|
|||||
Other liabilities
|
288.9
|
|
|
6.6
|
|
|
63.8
|
|
|
—
|
|
|
359.3
|
|
|||||
Total liabilities
|
4,919.2
|
|
|
2,740.5
|
|
|
3,195.2
|
|
|
(4,365.3
|
)
|
|
6,489.6
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
165.4
|
|
|
—
|
|
|
14.6
|
|
|
(14.6
|
)
|
|
165.4
|
|
|||||
Additional paid-in capital
|
2,243.8
|
|
|
4,125.7
|
|
|
4,808.2
|
|
|
(8,933.9
|
)
|
|
2,243.8
|
|
|||||
Accumulated other comprehensive loss
|
(510.0
|
)
|
|
—
|
|
|
(7.0
|
)
|
|
7.0
|
|
|
(510.0
|
)
|
|||||
Retained earnings
|
373.8
|
|
|
38.1
|
|
|
788.3
|
|
|
(826.4
|
)
|
|
373.8
|
|
|||||
Total shareholders' equity
|
2,273.0
|
|
|
4,163.8
|
|
|
5,604.1
|
|
|
(9,767.9
|
)
|
|
2,273.0
|
|
|||||
Total liabilities and shareholders' equity
|
$
|
7,192.2
|
|
|
$
|
6,904.3
|
|
|
$
|
8,799.3
|
|
|
$
|
(14,133.2
|
)
|
|
$
|
8,762.6
|
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Sales
|
$
|
1,330.3
|
|
|
$
|
—
|
|
|
$
|
5,344.9
|
|
|
$
|
(406.8
|
)
|
|
$
|
6,268.4
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of goods sold
|
1,176.1
|
|
|
—
|
|
|
4,770.3
|
|
|
(406.8
|
)
|
|
5,539.6
|
|
|||||
Selling and administration
|
137.9
|
|
|
—
|
|
|
212.8
|
|
|
—
|
|
|
350.7
|
|
|||||
Restructuring charges
|
1.7
|
|
|
—
|
|
|
35.9
|
|
|
—
|
|
|
37.6
|
|
|||||
Acquisition-related costs
|
12.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.8
|
|
|||||
Other operating (loss) income
|
(11.1
|
)
|
|
—
|
|
|
14.4
|
|
|
—
|
|
|
3.3
|
|
|||||
Operating (loss) income
|
(9.3
|
)
|
|
—
|
|
|
340.3
|
|
|
—
|
|
|
331.0
|
|
|||||
Earnings of non-consolidated affiliates
|
1.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
|||||
Equity income in subsidiaries
|
638.4
|
|
|
357.6
|
|
|
—
|
|
|
(996.0
|
)
|
|
—
|
|
|||||
Interest expense
|
44.5
|
|
|
165.8
|
|
|
13.0
|
|
|
(5.9
|
)
|
|
217.4
|
|
|||||
Interest income
|
6.3
|
|
|
—
|
|
|
1.4
|
|
|
(5.9
|
)
|
|
1.8
|
|
|||||
Income before taxes
|
592.7
|
|
|
191.8
|
|
|
328.7
|
|
|
(996.0
|
)
|
|
117.2
|
|
|||||
Income tax provision (benefit)
|
43.2
|
|
|
(310.0
|
)
|
|
(165.5
|
)
|
|
—
|
|
|
(432.3
|
)
|
|||||
Net income
|
$
|
549.5
|
|
|
$
|
501.8
|
|
|
$
|
494.2
|
|
|
$
|
(996.0
|
)
|
|
$
|
549.5
|
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|||||||||||||||||||
Year Ended December 31, 2016
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Sales
|
$
|
1,321.3
|
|
|
$
|
—
|
|
|
$
|
4,720.2
|
|
|
$
|
(490.9
|
)
|
|
$
|
5,550.6
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of goods sold
|
1,128.7
|
|
|
—
|
|
|
4,285.9
|
|
|
(490.9
|
)
|
|
4,923.7
|
|
|||||
Selling and administration
|
138.1
|
|
|
—
|
|
|
185.1
|
|
|
—
|
|
|
323.2
|
|
|||||
Restructuring charges
|
0.8
|
|
|
—
|
|
|
112.1
|
|
|
—
|
|
|
112.9
|
|
|||||
Acquisition-related costs
|
47.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
48.8
|
|
|||||
Other operating (loss) income
|
(2.2
|
)
|
|
—
|
|
|
12.8
|
|
|
—
|
|
|
10.6
|
|
|||||
Operating income
|
4.1
|
|
|
—
|
|
|
148.5
|
|
|
—
|
|
|
152.6
|
|
|||||
Earnings of non-consolidated affiliates
|
1.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
|||||
Equity income in subsidiaries
|
16.2
|
|
|
139.0
|
|
|
—
|
|
|
(155.2
|
)
|
|
—
|
|
|||||
Interest expense
|
38.8
|
|
|
153.9
|
|
|
4.7
|
|
|
(5.5
|
)
|
|
191.9
|
|
|||||
Interest income
|
4.7
|
|
|
—
|
|
|
4.2
|
|
|
(5.5
|
)
|
|
3.4
|
|
|||||
Income (loss) before taxes
|
(12.1
|
)
|
|
(14.9
|
)
|
|
148.0
|
|
|
(155.2
|
)
|
|
(34.2
|
)
|
|||||
Income tax (benefit) provision
|
(8.2
|
)
|
|
(57.6
|
)
|
|
35.5
|
|
|
—
|
|
|
(30.3
|
)
|
|||||
Net (loss) income
|
$
|
(3.9
|
)
|
|
$
|
42.7
|
|
|
$
|
112.5
|
|
|
$
|
(155.2
|
)
|
|
$
|
(3.9
|
)
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|||||||||||||||||||
Year Ended December 31, 2015
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Sales
|
$
|
1,215.4
|
|
|
$
|
—
|
|
|
$
|
2,002.5
|
|
|
$
|
(363.5
|
)
|
|
$
|
2,854.4
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of goods sold
|
1,057.8
|
|
|
—
|
|
|
1,792.5
|
|
|
(363.5
|
)
|
|
2,486.8
|
|
|||||
Selling and administration
|
110.0
|
|
|
—
|
|
|
76.3
|
|
|
—
|
|
|
186.3
|
|
|||||
Restructuring charges
|
0.7
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
2.7
|
|
|||||
Acquisition-related costs
|
117.9
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
|
123.4
|
|
|||||
Other operating (loss) income
|
(4.0
|
)
|
|
—
|
|
|
49.7
|
|
|
—
|
|
|
45.7
|
|
|||||
Operating (loss) income
|
(75.0
|
)
|
|
—
|
|
|
175.9
|
|
|
—
|
|
|
100.9
|
|
|||||
Earnings of non-consolidated affiliates
|
1.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
|||||
Equity income in subsidiaries
|
90.2
|
|
|
19.7
|
|
|
—
|
|
|
(109.9
|
)
|
|
—
|
|
|||||
Interest expense
|
60.9
|
|
|
37.0
|
|
|
4.5
|
|
|
(5.4
|
)
|
|
97.0
|
|
|||||
Interest income
|
3.1
|
|
|
—
|
|
|
3.4
|
|
|
(5.4
|
)
|
|
1.1
|
|
|||||
Income (loss) before taxes
|
(40.9
|
)
|
|
(17.3
|
)
|
|
174.8
|
|
|
(109.9
|
)
|
|
6.7
|
|
|||||
Income tax (benefit) provision
|
(39.5
|
)
|
|
(12.7
|
)
|
|
60.3
|
|
|
—
|
|
|
8.1
|
|
|||||
Net (loss) income
|
$
|
(1.4
|
)
|
|
$
|
(4.6
|
)
|
|
$
|
114.5
|
|
|
$
|
(109.9
|
)
|
|
$
|
(1.4
|
)
|
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net income
|
$
|
549.5
|
|
|
$
|
501.8
|
|
|
$
|
494.2
|
|
|
$
|
(996.0
|
)
|
|
$
|
549.5
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments, net
|
—
|
|
|
—
|
|
|
31.7
|
|
|
—
|
|
|
31.7
|
|
|||||
Unrealized losses on derivative contracts, net
|
(1.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
|||||
Pension and postretirement liability adjustments, net
|
(12.3
|
)
|
|
—
|
|
|
(9.3
|
)
|
|
—
|
|
|
(21.6
|
)
|
|||||
Amortization of prior service costs and actuarial losses, net
|
15.3
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
17.0
|
|
|||||
Total other comprehensive income, net of tax
|
1.3
|
|
|
—
|
|
|
24.1
|
|
|
—
|
|
|
25.4
|
|
|||||
Comprehensive income
|
$
|
550.8
|
|
|
$
|
501.8
|
|
|
$
|
518.3
|
|
|
$
|
(996.0
|
)
|
|
$
|
574.9
|
|
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||||||||
Year Ended December 31, 2016
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net (loss) income
|
$
|
(3.9
|
)
|
|
$
|
42.7
|
|
|
$
|
112.5
|
|
|
$
|
(155.2
|
)
|
|
$
|
(3.9
|
)
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments, net
|
—
|
|
|
—
|
|
|
(12.0
|
)
|
|
—
|
|
|
(12.0
|
)
|
|||||
Unrealized gains on derivative contracts, net
|
19.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19.7
|
|
|||||
Pension and postretirement liability adjustments, net
|
(25.3
|
)
|
|
—
|
|
|
(12.2
|
)
|
|
—
|
|
|
(37.5
|
)
|
|||||
Amortization of prior service costs and actuarial losses, net
|
10.9
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
12.3
|
|
|||||
Total other comprehensive income (loss), net of tax
|
5.3
|
|
|
—
|
|
|
(22.8
|
)
|
|
—
|
|
|
(17.5
|
)
|
|||||
Comprehensive income (loss)
|
$
|
1.4
|
|
|
$
|
42.7
|
|
|
$
|
89.7
|
|
|
$
|
(155.2
|
)
|
|
$
|
(21.4
|
)
|
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||||||||||
Year Ended December 31, 2015
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net (loss) income
|
$
|
(1.4
|
)
|
|
$
|
(4.6
|
)
|
|
$
|
114.5
|
|
|
$
|
(109.9
|
)
|
|
$
|
(1.4
|
)
|
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments, net
|
—
|
|
|
—
|
|
|
(9.8
|
)
|
|
—
|
|
|
(9.8
|
)
|
|||||
Unrealized losses on derivative contracts, net
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|||||
Pension and postretirement liability adjustments, net
|
(73.7
|
)
|
|
—
|
|
|
(5.1
|
)
|
|
—
|
|
|
(78.8
|
)
|
|||||
Amortization of prior service costs and actuarial losses, net
|
39.6
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
|
41.9
|
|
|||||
Total other comprehensive loss, net of tax
|
(36.8
|
)
|
|
—
|
|
|
(12.6
|
)
|
|
—
|
|
|
(49.4
|
)
|
|||||
Comprehensive (loss) income
|
$
|
(38.2
|
)
|
|
$
|
(4.6
|
)
|
|
$
|
101.9
|
|
|
$
|
(109.9
|
)
|
|
$
|
(50.8
|
)
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net operating activities
|
$
|
472.0
|
|
|
$
|
—
|
|
|
$
|
176.8
|
|
|
$
|
—
|
|
|
$
|
648.8
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(89.1
|
)
|
|
—
|
|
|
(205.2
|
)
|
|
—
|
|
|
(294.3
|
)
|
|||||
Payments under long-term supply contracts
|
—
|
|
|
—
|
|
|
(209.4
|
)
|
|
—
|
|
|
(209.4
|
)
|
|||||
Proceeds from disposition of property, plant and equipment
|
—
|
|
|
—
|
|
|
5.2
|
|
|
—
|
|
|
5.2
|
|
|||||
Distributions from consolidated subsidiaries, net
|
2.7
|
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|||||
Net investing activities
|
(86.4
|
)
|
|
—
|
|
|
(409.4
|
)
|
|
(2.7
|
)
|
|
(498.5
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings
|
620.0
|
|
|
1,375.0
|
|
|
40.5
|
|
|
—
|
|
|
2,035.5
|
|
|||||
Repayments
|
(690.8
|
)
|
|
(1,334.1
|
)
|
|
(13.0
|
)
|
|
—
|
|
|
(2,037.9
|
)
|
|||||
Stock options exercised
|
29.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.8
|
|
|||||
Dividends paid
|
(133.0
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
2.7
|
|
|
(133.0
|
)
|
|||||
Debt and equity issuance costs
|
(8.3
|
)
|
|
(2.9
|
)
|
|
—
|
|
|
—
|
|
|
(11.2
|
)
|
|||||
Intercompany financing activities
|
(171.4
|
)
|
|
(38.0
|
)
|
|
209.4
|
|
|
—
|
|
|
—
|
|
|||||
Net financing activities
|
(353.7
|
)
|
|
—
|
|
|
234.2
|
|
|
2.7
|
|
|
(116.8
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||||
Net increase in cash and cash equivalents
|
31.9
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
33.9
|
|
|||||
Cash and cash equivalents, beginning of year
|
25.2
|
|
|
—
|
|
|
159.3
|
|
|
—
|
|
|
184.5
|
|
|||||
Cash and cash equivalents, end of year
|
$
|
57.1
|
|
|
$
|
—
|
|
|
$
|
161.3
|
|
|
$
|
—
|
|
|
$
|
218.4
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||
Year Ended December 31, 2016
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net operating activities
|
$
|
702.6
|
|
|
$
|
—
|
|
|
$
|
(99.4
|
)
|
|
$
|
—
|
|
|
$
|
603.2
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(65.7
|
)
|
|
—
|
|
|
(212.3
|
)
|
|
—
|
|
|
(278.0
|
)
|
|||||
Business acquired and related transactions, net of cash acquired
|
(69.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(69.5
|
)
|
|||||
Payments under long-term supply contracts
|
—
|
|
|
—
|
|
|
(175.7
|
)
|
|
—
|
|
|
(175.7
|
)
|
|||||
Proceeds from sale/leaseback of equipment
|
—
|
|
|
—
|
|
|
40.4
|
|
|
—
|
|
|
40.4
|
|
|||||
Proceeds from disposition of property, plant and equipment
|
0.2
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.5
|
|
|||||
Proceeds from disposition of affiliated companies
|
8.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.8
|
|
|||||
Net investing activities
|
(126.2
|
)
|
|
—
|
|
|
(347.3
|
)
|
|
—
|
|
|
(473.5
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings
|
—
|
|
|
—
|
|
|
230.0
|
|
|
—
|
|
|
230.0
|
|
|||||
Repayments
|
(335.6
|
)
|
|
(67.5
|
)
|
|
(32.2
|
)
|
|
—
|
|
|
(435.3
|
)
|
|||||
Stock options exercised
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|||||
Excess tax benefits from stock-based compensation
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|||||
Dividends paid
|
(132.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(132.1
|
)
|
|||||
Debt and equity issuance costs
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|||||
Intercompany financing activities
|
(203.8
|
)
|
|
68.5
|
|
|
135.3
|
|
|
—
|
|
|
—
|
|
|||||
Net financing activities
|
(670.6
|
)
|
|
—
|
|
|
333.1
|
|
|
—
|
|
|
(337.5
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||||
Net decrease in cash and cash equivalents
|
(94.2
|
)
|
|
—
|
|
|
(113.3
|
)
|
|
—
|
|
|
(207.5
|
)
|
|||||
Cash and cash equivalents, beginning of year
|
119.4
|
|
|
—
|
|
|
272.6
|
|
|
—
|
|
|
392.0
|
|
|||||
Cash and cash equivalents, end of year
|
$
|
25.2
|
|
|
$
|
—
|
|
|
$
|
159.3
|
|
|
$
|
—
|
|
|
$
|
184.5
|
|
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||
Year Ended December 31, 2015
|
|||||||||||||||||||
(In millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent Guarantor
|
|
Issuer
|
|
Subsidiary
Non-Guarantor |
|
Eliminations
|
|
Total
|
||||||||||
Net operating activities
|
$
|
(70.6
|
)
|
|
$
|
—
|
|
|
$
|
287.7
|
|
|
$
|
—
|
|
|
$
|
217.1
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(74.0
|
)
|
|
—
|
|
|
(56.9
|
)
|
|
—
|
|
|
(130.9
|
)
|
|||||
Business acquired and related transactions, net of cash acquired
|
(408.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(408.1
|
)
|
|||||
Proceeds from disposition of property, plant and equipment
|
1.7
|
|
|
—
|
|
|
24.5
|
|
|
—
|
|
|
26.2
|
|
|||||
Proceeds from disposition of affiliated companies
|
8.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.8
|
|
|||||
Net investing activities
|
(471.6
|
)
|
|
—
|
|
|
(32.4
|
)
|
|
—
|
|
|
(504.0
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings
|
1,275.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,275.0
|
|
|||||
Repayments
|
(149.5
|
)
|
|
—
|
|
|
(581.2
|
)
|
|
—
|
|
|
(730.7
|
)
|
|||||
Stock options exercised
|
2.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|||||
Excess tax benefits from stock-based compensation
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|||||
Dividends paid
|
(79.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(79.5
|
)
|
|||||
Debt and equity issuance costs
|
(35.2
|
)
|
|
(10.0
|
)
|
|
—
|
|
|
—
|
|
|
(45.2
|
)
|
|||||
Intercompany financing activities
|
(591.2
|
)
|
|
10.0
|
|
|
581.2
|
|
|
|
|
|
—
|
|
|||||
Net financing activities
|
422.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
422.2
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(120.0
|
)
|
|
—
|
|
|
255.2
|
|
|
—
|
|
|
135.2
|
|
|||||
Cash and cash equivalents, beginning of year
|
239.4
|
|
|
—
|
|
|
17.4
|
|
|
—
|
|
|
256.8
|
|
|||||
Cash and cash equivalents, end of year
|
$
|
119.4
|
|
|
$
|
—
|
|
|
$
|
272.6
|
|
|
$
|
—
|
|
|
$
|
392.0
|
|
2017
|
|
First
Quarter |
|
Second
Quarter |
|
Third
Quarter |
|
Fourth
Quarter |
|
Year
|
||||||||||
Sales
|
|
$
|
1,567.1
|
|
|
$
|
1,526.5
|
|
|
$
|
1,554.9
|
|
|
$
|
1,619.9
|
|
|
$
|
6,268.4
|
|
Cost of goods sold
|
|
1,393.7
|
|
|
1,404.1
|
|
|
1,345.6
|
|
|
1,396.2
|
|
|
5,539.6
|
|
|||||
Net income (loss)
|
|
13.4
|
|
|
(5.9
|
)
|
|
52.7
|
|
|
489.3
|
|
|
549.5
|
|
|||||
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
0.08
|
|
|
(0.04
|
)
|
|
0.32
|
|
|
2.93
|
|
|
3.31
|
|
|||||
Diluted
|
|
0.08
|
|
|
(0.04
|
)
|
|
0.31
|
|
|
2.89
|
|
|
3.26
|
|
|||||
Common dividends per share
|
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
|
0.80
|
|
|||||
Market price of common stock
(1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
High
|
|
33.88
|
|
|
33.67
|
|
|
34.85
|
|
|
37.52
|
|
|
37.52
|
|
|||||
Low
|
|
25.43
|
|
|
27.79
|
|
|
28.45
|
|
|
33.34
|
|
|
25.43
|
|
2016
|
|
First
Quarter |
|
Second
Quarter |
|
Third
Quarter |
|
Fourth
Quarter |
|
Year
|
||||||||||
Sales
|
|
$
|
1,348.2
|
|
|
$
|
1,364.0
|
|
|
$
|
1,452.7
|
|
|
$
|
1,385.7
|
|
|
$
|
5,550.6
|
|
Cost of goods sold
|
|
1,175.4
|
|
|
1,236.9
|
|
|
1,284.4
|
|
|
1,227.0
|
|
|
4,923.7
|
|
|||||
Net (loss) income
|
|
(37.9
|
)
|
|
(1.0
|
)
|
|
17.5
|
|
|
17.5
|
|
|
(3.9
|
)
|
|||||
Net (loss) income per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
(0.23
|
)
|
|
(0.01
|
)
|
|
0.11
|
|
|
0.11
|
|
|
(0.02
|
)
|
|||||
Diluted
|
|
(0.23
|
)
|
|
(0.01
|
)
|
|
0.11
|
|
|
0.10
|
|
|
(0.02
|
)
|
|||||
Common dividends per share
|
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
|
0.80
|
|
|||||
Market price of common stock
(1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
High
|
|
17.75
|
|
|
24.99
|
|
|
26.46
|
|
|
26.93
|
|
|
26.93
|
|
|||||
Low
|
|
12.29
|
|
|
16.55
|
|
|
18.24
|
|
|
19.62
|
|
|
12.29
|
|
(1)
|
NYSE composite transactions.
|
2
|
|
(a)
|
|
3
|
|
(a)
|
|
|
(b)
|
||
|
(c)
|
||
4
|
|
(a)
|
|
|
(b)
|
||
|
(c)
|
||
|
(d)
|
||
|
(e)
|
||
|
(f)
|
||
|
(g)
|
||
|
(h)
|
||
|
(i)
|
|
(j)
|
||
|
(k)
|
||
|
(l)
|
||
|
(m)
|
||
|
(n)
|
||
|
(o)
|
||
|
(p)
|
||
|
(q)
|
||
|
(r)
|
||
|
(s)
|
||
|
(t)
|
||
|
(u)
|
||
|
(v)
|
||
|
(w)
|
||
|
(x)
|
||
|
(y)
|
||
|
(z)
|
||
|
(aa)
|
||
|
(bb)
|
||
|
(cc)
|
||
10
|
|
(a)
|
|
|
(b)
|
|
(c)
|
||
|
(d)
|
||
|
(e)
|
||
|
(f)
|
||
|
(g)
|
||
|
(h)
|
||
|
(i)
|
||
|
(j)
|
||
|
(k)
|
||
|
(l)
|
||
|
(m)
|
||
|
(n)
|
||
|
(o)
|
||
|
(p)
|
||
|
(q)
|
||
|
(r)
|
||
|
(s)
|
||
|
(t)
|
||
|
(u)
|
||
|
(v)
|
||
|
(w)
|
||
|
(x)
|
||
|
(y)
|
||
|
(z)
|
||
|
(aa)
|
||
|
(bb)
|
||
|
(cc)
|
||
|
(dd)
|
||
|
(ee)
|
21
|
|
|
|
23
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32
|
|
|
|
101.INS
|
|
|
XBRL Instance Document
|
101.SCH
|
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
OLIN CORPORATION
|
||
|
By:
|
/s/ John E. Fischer
|
|
|
|
John E. Fischer
|
|
|
|
Chairman, President and Chief Executive Officer
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ JOHN E. FISCHER
John E. Fischer
|
|
Chairman, President and Chief Executive Officer and Director (Principal Executive Officer)
|
|
February 26, 2018
|
|
|
|
|
|
/s/ GRAY G. BENOIST
Gray G. Benoist
|
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/s/ DONALD W. BOGUS
Donald W. Bogus
|
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/s/ C. ROBERT BUNCH
C. Robert Bunch
|
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/s/ RANDALL W. LARRIMORE
Randall W. Larrimore
|
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/s/ JOHN M. B. O’CONNOR
John M. B. O’Connor
|
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/s/ RICHARD M. ROMPALA
Richard M. Rompala
|
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/s/ EARL L. SHIPP
Earl L. Shipp |
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/s/ VINCENT J. SMITH
Vincent J. Smith
|
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/s/ WILLIAM H. WEIDEMAN
William H. Weideman |
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/s/ CAROL A. WILLIAMS
Carol A. Williams |
|
Director
|
|
February 26, 2018
|
|
|
|
|
|
/s/ TODD A. SLATER
Todd A. Slater
|
|
Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
February 26, 2018
|
|
|
|
|
|
/s/ RANDEE N. SUMNER
Randee N. Sumner
|
|
Vice President and Controller (Principal Accounting Officer)
|
|
February 26, 2018
|
1 Year Olin Chart |
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